Most of the 60 municipalities across the state are reportedly guilty of defaulting on payment of over Rs 25 crore towards their employees’ provident fund, dearness allowance, pension and even LIC premium.
It is alleged that 80 per cent of the municipalities have not made the contributions required for the past year.
“These municipalities pay only the salary and default on the other components of the gross,” regrets K. Jayadevan, general secretary of the Left-leaning Kerala Municipal and Corporation Staff Union.
The financial position of the municipalities and corporations is said to be so bad that they only have funds enough to pay contractors, their electricity , water and fuel bills, besides the salaries of their employees.
“There are several municipalities like Alappuzha, Kayamkulam, Chengannur, Mavelikkara and Chittoor-Thathamangalam which have been defaulting on paying the benefits for years together,” Jayad-evan claims.
The Aluva municipality alone is said to owe upto Rs 30 lakh in PFcontribution and Rs 12 lakh in DA arrears.
“Only 12 municipalities promptly remit their PF and other contributions,” says P.S.M. Sadique, president of the right wing Kerala Municipal and Corporation Staff Union.