Tamil Nadu government has ordered the advance payment of September salaries, wages and pensions to state government employees and pensioners on Wednesday, September 25, ahead of the nationwide bank strike. The move is to prevent government employees and pensioners from being put at risk if banks are held closed during the strike period.
The government departments have been directed by the Tamil Nadu Finance Department to ensure that drawing and disbursing officers prepare and submit the salary, daily-wage and pension bills in advance so that payments can be made on 25 September. The directive covers employees and pensioners of the state government as well as people working in government boards, corporations and universities.
The decision comes at the time of a proposed nationwide bank strike from September 28 to 30. Bank unions have called for the three-day strike to demand a 5-day banking week. The Union government is asking bank employees to consider the strike and is taking steps to minimise the damage to banking services.
The Tamil Nadu government has therefore decided to release the monthly payments ahead of schedule instead of putting bank payments at risk of delays. Salaries, wages and pensions will be received on Friday from the banking system and Pay and Accounts Offices. The Director of Treasuries and Accounts has also been instructed to take the necessary steps to facilitate the advance payments. A copy of the state government's order has been forwarded to the Reserve Bank of India.
The advance payment is so important because the proposed bank strike comes just before a period of additional disruption in which holidays could come to the fore. With the physical branch operations possibly affected, government employees and pensioners could not make or receive their monthly payments. The Tamil Nadu government intends to avoid this kind of situation by completing the salary and pension disbursement process prior to the strike.
There is also the United Forum of Bank Unions and other bank employee organisations calling for a national strike. The Finance Ministry said it was working with unions to address their concerns and has asked employees to keep banking services going. One of the main demands put forward by the government is a five-day working week in the banking sector.
Banking services like digital transactions may continue but physical branch services and even transactions may be affected if the strike occurs. Several banks have advised customers to complete important branch-related transactions ahead of time.
For Tamil Nadu government employees, pensioners and other beneficiaries covered by the state order, the advance payment means that the September payment process will be completed ahead of the scheduled strike. It should give employees and pensioners greater certainty in case banking services are disrupted.
The decision by the Tamil Nadu government follows a similar move at the Central Government level. The Ministry of Finance had earlier authorised the advance disbursement of September salaries, wages and pensions to Central government employees and pensioners on 25 September because of the proposed bank strike from September 28 to 30.
The advance salary and pension payment by the Tamil Nadu government is a precautionary administrative step to ensure that the proposed bank strike does not interfere with the timely receipt of monthly payments by state government employees, pensioners and other eligible beneficiaries.