Telangana government may hold back state incentive'

The special increment being paid to government employees in appreciation of their active role in the Telangana statehood agitation could face the impact of demonetisation. About 5 per cent of basic pay is being paid to 3.5 lakh staff since the formation of TS in June 2014 as the special incentive. It finds a special mention on their payslip unlike other increments which add up to their basic pay.

With state government struggling to pay salaries due to dwindling revenues on account of demonetisation, the increment is likely to be stopped till the situation improves. The increment costs the government nearly Rs 200 crore per month. The finance department has mooted the proposal to withhold the increment, and has sought government approval. The government is adopting a cautious approach since it would invite the wrath of employees.

The government plans to hold negotiations with employees unions and highlight the poor financial condition after demonetisation. “It's not scrapping the increment but only halting payment till the financial condition improves, that too if the situation demands. At the most, it may be stopped for three or four months till April,” said an official in the finance department. TS employees are ready to cooperate with the government. “If they stop it for two-three months and pay the arrears later, it would not be a problem,” said Mr A. Padma Chary, TS employees leader.