Basildon Council chief executive Bala Mahendran will pick up more than £100,000 a year for doing a three-day week.

Mr Mahendran, 54, is going part time from 2013, but says he will still be in charge of the council.

Mr Mahendran takes home £172,451 in basic pay, but bonuses, expenses and pension contributions boosted that figure to £227,968 in 2009-10.

The reduction in hours will be marked by a cut in his salary by two fifths, but it could still top £100,000 – without bonuses.

The changes to Mr Mahendran’s working hours, which the council are calling “flexible retirement”, is part of a review of top-tier officers which will save £700,000 over the next three years.

Mr Mahendran, who lives in Ilford, east London, said: “My salary is pro-rated and will reduce in accordance with the reduction of my working hours, which will be three days a week.

“These three days will involve flexibility to ensure I can carry out my duties as chief executive effectively for the people of Basildon and as head of paid service for council staff.

“Reduced hours for chief executives is not uncommon across local authorities, especially as we face the challenge of making savings and protecting valued services.”

The move has drawn criticism from opposition councillors, who believe the post has to be a full-time job.

Labour leader Lynda Gordon said: “I find it extraordinary we can have a part-time chief executive on an authority of this size which is having to make so many cuts over the next few years. It may be possible in a much smaller authority.

“If it can be done, it makes you wonder if we ever needed one at all.”

Council leader Tony Ball said Mr Mahendran may work two days on one week and four the next, but would have responsibility seven days a week and may have to work on days off.

He says the council considered sharing its chief executive with other authorities, but it was ruled out.

Mr Ball said the changes would work because heads of departments would be given greater responsibility and it will have two years to bed in.

He said Chelmsford Council’s chief executive has been successfully part time for a year.

Mr Ball added: “We have to ensure we have the best senior leadership arrangements in place.

“But we also have to find £5.4million in savings by 2014/15 and we have to look at every part of the council, including the most senior staff.

“Other councils have continued very successfully with a variety of different arrangements for their chief executive, including working reduced hours.

“It will also be a good opportunity for a number of our heads of service to take a more significant role within the authority in developing our leadership model.”