No proposal to cut salary of central govt employees, says Finance Ministry

The denial comes after television news channel Times Now claimed that the government was planning on cutting salaries of Central Government employees by 30 per cent

The Finance Ministry on Monday denied reports that the central government plan to cut salaries of its employees as the economy crawls through the coronavirus pandemic. 

The denial comes after television news channel Times Now claimed that the government plans cutting salaries by 30 per cent. The report said the government's lowest rung employees and contractual staff will be exempted from the pay cut.

"There is no proposal under consideration of Govt for any cut whatsoever in the existing salary of any category of central government employees," said the ministry on Twitter. 

"The reports in some sections of media are false and have no basis whatsoever," it added. 

Union Minister Jitender Singh also asked people to ignore the fake news, adding, "There is no proposal by the Government to carry out deduction in the salary of its employees."

The Centre had in April frozen the Dearness Allowance (DA) for its 4.8 million employees and 6.5 million pensioners at 17 per cent till July 1, 2021, to partly offset the increase in spending on health in light of the coronavirus disease (Covid-19) crisis.