Government of Kerala Takes Measures to Control Salary Certificates for Govt Employees
The Kerala State Government has implemented new guidelines to regulate the issuance of salary certificates to government employees. Due to the prevailing debt crisis among employees, the Finance Department has issued specific directions concerning the issuance of salary and liability certificates to Drawing and Disbursing Officers (DDOs).
Restrictions on Salary Certificates
As per the KFC Act, salary certificates, including loan recovery agreements, will only be provided for the purpose of obtaining a loan. To prevent employees from acquiring loans beyond their repayment capacity, the DDOs are instructed not to issue salary certificates in such cases. The monthly loan or chit-fund installment of an employee should not exceed their net salary. Consequently, the department will not issue salary certificates for new loans in these situations.
Exceptions and Eligibility
No salary slip will be issued to employees who have ongoing payment recoveries from their salary or those who have received a stop memo, temporarily suspending loan recovery. Additionally, salary certificates will not be granted if the loan or chit repayment term extends beyond the employee’s service period. Employees working on a contract basis are also ineligible to receive salary certificates, except when the loan is not determined based on their net salary, in which case employment certificates may be granted.
Applicability to Part-Time Contingent Employees and Teachers
The regulations extend to part-time contingent employees and teachers. They can obtain salary certificates for loan amounts of up to 75 times their basic salary or a maximum of 3 crores, whichever is lower.
As the Government of Kerala takes these proactive measures to control salary certificates, it aims to mitigate the debt crisis and ensure that employees do not take on loans beyond their means of repayment. By adhering to these guidelines, the state government seeks to provide financial stability to its workforce.
About the Author
I am a professional teacher working in the Kerala State Board, catering to students in classes 10th to 12th. With a passion for education and a commitment to nurturing young minds, I strive to make a positive impact on the lives of my students.