In response to the severe financial hardships caused by perquisite tax deductions, UBOA Kerala State launched the Urgent Financial Assistance initiative, which provides much-needed relief to officers facing financial distress.

Phase I – Financial Assistance

The first phase of the financial relief scheme was introduced in early 2025 to address the financial struggles of officers whose salaries were significantly reduced due to perquisite tax deductions. The scheme provided interest-free short-term financial assistance of up to ₹50,000, with a repayment period of three months starting from May 2025.

The assistance was targeted at officers who were left with a net salary of less than ₹15,000, a situation that led many officers to experience severe financial strain, with some left with as little as ₹1,000 to support themselves and their families. This phase of the initiative was crucial in providing immediate relief to the officers most in need.

Phase II – Continued Financial Relief

Due to the ongoing financial strain caused by perquisite tax deductions, UBOA Kerala State launched Phase II of the financial assistance scheme. This phase continued the relief effort by offering interest-free short-term loans of up to ₹50,000, with the same three-month repayment period starting from May 2025.

For Phase II, the scheme was extended to officers with a net salary between ₹15,000 and ₹25,000, along with the original eligibility for officers earning less than ₹15,000. The priority remained for those in the most dire financial distress, but the association aimed to extend support to as many officers as possible, ensuring that they did not suffer due to the financial challenges posed by the perquisite tax deductions.

To ensure that the financial assistance reached those who genuinely needed it, the application process required affected officers to complete a form, specifying their salary details. The participation of officers with salaries between ₹15,000 and ₹25,000 was also encouraged, with net salaries of less than ₹15,000 given the highest priority.