Study finds finances of school teachers severely impacted due to coronavirus

A study has found that the coronavirus pandemic has impacted the finances of teachers, especially those who work in low-fee schools. According to the study conducted by Central Square Foundation, teachers are facing financial problems as they are not receiving full salary because of the revenue model of the schools getting affected by the ongoing health crisis that has resulted in the closure of institutions and non-payment of fees by parents. 

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"Nearly 50% of teachers didn’t receive their salary for March despite schools closing only in mid-March. Less than 20% of teachers from private schools continued to receive their salaries after March. A few teachers in Telangana have found other means to earn their wages in the interim, including agriculture work, enrolling in MGNREGA programs, and manual labour. School service providers rely on the school fee cycle and the timing of the closure has affected their revenues," the report titled 'State of the Sector Report: Private Schools in India' said. 

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The report further stated that low-fee schools have seen a significant impact on revenue due to school closures, examination postponement, and widespread non-payment for this period. While no private school reported collecting fees during the lockdown, 25 percent of parents said they have been paying fees during this period. As per the reports, more than 50 percent of school owners surveyed have uncollected fees, to the tune of Rs. 4 lakh to Rs. 4.8 crore, due from the previous year, accounting for 13 percent to 80 percent of annual revenue.

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'Financial distress may continue'

According to the study, financial distress for schools will continue even after re-opening as they anticipate a drop in enrolments. A significant proportion of parents surveyed say they may have to switch schools for the coming academic year. Enrolment in private schools may decrease in the short term as some parents might enroll their children in government schools for this academic year.