Published On : Thu, Sep 21st, 2017

Cash-starved NMC spends lakhs for President’s visit but leaves retired employees in the lurch

NMC Pay Hikes
Nagpur: The cash-starved Nagpur Municipal Corporation (NMC) that has “opened its coffers” to make sure the upcoming visit of President memorable one is leaving its retired employees in the lurch. At a time when the civic body which is not able to pay salaries of employees on time is drawing flak from retired employees as they are being deprived of retirement dues.

Notably, at least 30-40 employees of NMC are retiring from service every month since 2016. As is the practice, the retired employees are handed over their retirement dues such as gratuity, provident fund, leave encashment, and other dues on the day of their retirement on the lines of Central Government. Considering the precarious financial condition, the dues should have been paid at least within a period of one month. But that is not being done and thus leaving the retirees in the dock.

The retired employees of NMC should get their GPF, gratuity, GIS and leave encashment amount on the day of retirement. The civic body is anyhow handing over the GPF cheque to retired employees on the same day. But the GIS cheque is being given after 2-3 months. Gratuity money is being given well after 4-5 months. And when it comes to leave encashment amount, the retired employees have to wait for a year or so. Moreover, the money is paid without the interest. The leave encashment amount is less than Rs 5 lakh in average per retired employee. Currently, around 300 retired employees in the line for receiving the leave encashment money. In all, the NMC administration owes approximately Rs 5 crore to the retired employees. The amount is increasing month by month as more and more employees are retiring from NMC service.

Some of the deprived retired employees grudged the spending of lakhs of rupees for making the visit of President memorable one. They would have been happy had the money was spent by various departments of State Government. The NMC is spending the huge money out of the interest amount of the retired employees that too on temporary structures. It is nothing but mockery of years of service put in by the retired employees, they lamented.