PANAJI
In a major relief for employees of economically weaker municipal councils, the Directorate of Urban Development has announced salary and pension grants to the employees and retired staff of C-class municipalities in Goa. There are a total three ‘C’ Class Municipalities --Valpoi, Sanguem and Pernem.
The scheme, titled “Grant of Financial Assistance to Economically Weaker ‘C’ Class Municipal Councils for Strengthening the Administration Scheme, 2026”, has come into force with immediate effect and will remain valid for a period of five years.
Under the scheme, the State government will provide grants of up to Rs 50 lakh annually towards payment of staff salaries and up to Rs 25 lakh annually towards pensionary benefits for retired employees. The move aims to bring parity between employees of C-class municipalities and those serving in A and B-class municipal councils.
In addition to the fixed grants, the government may sanction additional financial assistance to weaker C-class municipal councils in contingent situations after assessing the merits of each case, particularly when councils are unable to meet administrative expenditure due to lack of funds.
As per the notification, the scheme was framed considering the weak financial position of smaller municipal councils, which largely depend on State grants due to limited revenue sources and smaller population bases.
It stated that many C-class municipalities struggle to pay salaries on time and are unable to provide pension benefits after retirement. At present, employees reportedly receive only Dearness Allowance (DA) in several cases due to financial constraints.
“Employees of smaller municipalities perform similar duties to those in larger councils but lack financial security. Providing salaries and pensionary benefits will improve staff morale and ensure livelihood support after retirement,” the notification stated.
The government said the scheme seeks to ensure financial stability, improve employee retention and motivation, enhance social security for retired employees, and bridge disparities among municipal classes.
Financial assistance under the scheme will be released in two installments. The second installment will be sanctioned only after submission of utilization certificates for the earlier release. Any unutilized amount will be adjusted against the subsequent installment.
The notification further states that grants sanctioned under the scheme must be utilized within the same financial year, although the Director of Urban Development may extend the time limit in deserving cases.
