KSRTC cancels earned leave encashment facility

The financial difficulties exacerbated by the raging pandemic has forced KSRTC to cancel the scheme to encash the earned leave.

In a communication to its employees, the Karnataka State Road Transport Corporation (KSRTC) invoked the provision of the May 5 Government Order to cancel the encashment of leave.

"Due to Covid-19, the Corporation is facing serious financial constraints," a circular from the managing director said, but noted that the employees retiring between April 2020 and March 2021 are eligible to encash their leave during the month of their retirement.

Even before the Covid crisis, the KSRTC and other state transport service providers had been facing financial difficulties due to the rise in fuel prices.

After the lockdown halted the revenue generation, the state government had to provide grants to the Corporations to pay the salaries of employees. With pressure mounting to keep its revenue flowing amid pandemic, the Corporation has tightened its purse strings.