Previous govt’s Finance Department makes calculation error in KSFE salary revision; excess pay to be recovered

THIRUVANANTHAPURAM: A calculation error by the previous government’s Finance Department during the salary revision at the Kerala State Financial Enterprises (KSFE) resulted in employees receiving excess pay. The new government detected the error and has begun steps to correct it. The excess amount paid to employees is likely to be recovered, according to reports. Employees have begun protesting against the move, while a vigilance inquiry has also been recommended against the officials responsible for the error.

The KSFE salary revision was implemented four years after the 2022 pay revision for state government employees and teachers. The previous government approved the revision at its final Cabinet meeting before leaving office. The error occurred when Finance Department officials calculated the revised salaries.

Up to Rs 7,200 may be recovered

Between Rs 1,230 and Rs 7,200 could be recovered from each employee’s salary. The recovery is expected to begin in September, which would reduce the salaries employees have been receiving. The Congress-backed Financial Enterprises Employees Association has demanded a vigilance inquiry against those responsible for the error.

How did the error happen?

The government order stated that the revised basic salary should be calculated by adding 10% fitment and 31% dearness allowance (DA) to the existing basic salary.

However, officials first added 31% DA to the existing basic salary to arrive at the revised basic pay and then added another 10% to the revised amount. This resulted in employees receiving more than the salary they were actually entitled to.

The salary revision was implemented in March this year. The KSFE management had written to the Finance Department at the time, pointing out the calculation error. However, no action was taken then. The issue was examined in detail only after the new government came to power.