#Budget2017-18: Employees getting better welfare

KL News Network


After promising them 7th pay commission by next fiscal, Finance Minister Dr Haseeb Drabu has announced a comprehensive insurance cover that will replace the existing medical insurance system that is expiring by the end of this financial year.

The new scheme will provide insurance cover to all the serving employees of all categories in for next five years. Even pensioners can avail this up to a cover of Rs 6 lakh for the full family unit.

In yet another, decision that will have massive impact on employee management, this budget has delinked salary of a section of the employees – working for various schemes funded by central government, from the release of funds. Mostly teachers working under SSA and RMSA, Drabu said the government will be releasing their salaries even if the funds are still parked with the central pool.

Drabu said the Chief Minister was keen that this happens at the earliest. She had even set a deadline, he said.

“I am glad to announce a very bold decision: I am delinking the disbursement of salary from the source of funding of salary,” Drabu said. “With this, the misery of thousands of people who do an honest day’s job will be a memory of the past.” He admitted that the initiative will cause a liquidity stress that state will have to endure.


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