Yeshu 26th February 2021 Written Episode, Written Update on

The Supreme Court has said in a judgment that government employees are entitled to their salary and pension. If the government delays the payment of salaries and pensions of employees, the government may be directed to pay salaries and pensions with a reasonable interest rate. The Andhra Pradesh High Court had allowed a PIL filed by a former District and Sessions Judge and in which the payment of deferred salary of March-April 2020 to pay salary at the interest rate of 12 per cent per annum and March with equal interest rate. Asked to pay the pending pension for the month of 2020.

The state government, in a challenge to the High Court’s decision, confined itself to the interest rate issue only. The state argued that the state had decided to postpone the payment of salaries and pensions because the state had found itself in precarious financial condition due to the epidemic. In such a situation, it would not be right to give the state the obligation to pay the interest.

A bench of Justice DY Chandrachud said in the judgment that the instructions given for payment of delayed portions of salary and pension are not clear. Employees receive salary due to service in the state. In other words, government employees are entitled to salary and it is payable according to law. Similarly, it is also decided that pension is paid for the last several years of service rendered by the pensioners to the state.

The order of giving simple interest at the rate of six per cent per annum is
therefore a matter of entitlement of employees by the rules and regulations of the service of the State Government employees. While disposing of the appeal, the bench directed that interest should not be paid to punish the government. It is true that the government has delayed the payment of pension, so it will have to pay its interest. We direct that instead of 12 percent per annum interest rate, the Andhra Pradesh government will pay simple interest at the rate of 6 per cent per annum of salary and pension over a period of 30 days.


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