Govt’s cash crunch leads to MSRTC employees getting only 56% of their salary
Following the intervention of deputy chief minister Eknath Shinde, the finance department said that funds would be released by April 15
MUMBAI: The effects of the cash crunch faced by the state government are now being felt by the 87,000 employees of the Maharashtra State Road Transport Corporation (MSRTC), who received only 56% of their salary for March 2025. Transport minister Pratap Sarnaik blamed the finance department for this, saying that it had not released the funds it owed MSRTC for sops like 50% concession fare to women passengers, and this had affected the corporation’s daily revenue. Following the intervention of deputy chief minister Eknath Shinde, the finance department said that the funds would be released by April 15.
The financial condition of MSRTC has been a matter of concern for years. Last month, the issue of not crediting employees’ provident fund and gratuity on time was raised in the legislative council. Now, within a month, insufficient funds have forced MSRTC to credit only 56% of the salary to the accounts of employees.
“The salary for March 2025 was credited on April 9, and we have received complaints from employees of MSRTC from all over Maharashtra that they received only 56% of their salary,” said Shrirang Barge, general secretary of the Maharashtra ST Karmachari Congress. “We have also received an official communication from the MSRTC administration regarding this. It says that regular employees will receive 56% of their salary now, and the orders about crediting the rest of the amount will be circulated later.” Barge added that around ₹460 crore was required to pay the complete salary of MSRTC employees but only ₹270 crore was released.
Sarnaik, who was appointed chairman of MSRTC on Thursday, blamed the government’s finance department for the state of affairs, and said that employees needed to be paid their full salary, as it was difficult for them to run their household on half the amount. “I fully support the ST employees in this matter,” he said. “The state government owes money to MSRTC against passenger concessions such as the 50% waiver in fare to women passengers and others. These concessions have affected the daily revenue of MSRTC. We are not asking for anything more than the lawful right of MSRTC.”
Sarnaik added that on Friday, after taking charge as MSRTC chairman, he would look into the monthly accounts of the corporation and the dues yet to be received from the state government.
Meanwhile, some MSRTC employees, upset over receiving only 56% salary, met Eknath Shinde at Sangola in Solapur district on Wednesday. After hearing their grievances, Shinde placed a call to the additional chief secretary of the finance department, OP Gupta. Gupta assured Shinde that the funds would be released by Tuesday, April 15.
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