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Pay hike for 7 lakh government staff as Karnataka decides to implement 7th Pay Commission recommendations

The 7th Pay Commission, headed by former chief secretary K Sudhakar Rao, has recommended a 27.5 percent hike on basic salary of government employees.

South First Desk

Published Jul 16, 2024 | 10:55 AM ⚊ Updated Jul 16, 2024 | 5:13 PM

Siddaramaiah

CM Siddaramaiah. (X)

The Karnataka cabinet on Monday, 15 July, decided to implement the recommendations of the seventh Pay Commission effective from 1 August, official sources said.

The chief minister is expected to make an announcement regarding the pay hike to more than seven lakh state government employees in the Legislative Assembly on Tuesday, 16 July, the sources said.

The 7th Pay Commission, headed by former chief secretary K Sudhakar Rao, has recommended a 27.5 percent hike on basic salary of government employees.

This is expected to cost the government exchequer an additional ₹17,440.15 crore annually.

The 7th State Pay Commission was constituted on 19 November, 2022, to address the demands for revision of pay, allowance, and pension for state government employees. The commission submitted its report on 24 March, 2024.

Recommendations of the Pay Commission

  • The salary, salary-related allowances, and pensions of government employees will be revised with effect from 1 August, 2024, as decided in the Cabinet meeting held on 15 July, 2024.
  • Accordingly, the salary and pensions will be revised by adding 31 percent Dearness Allowance and fitment of 27.50 percent to the basic pay of the employee as of 1 July, 2022.
  • This will increase the basic salary and pension of the employees by 58.50 percent. There will be an increase of 32 percent in house rent allowance.
  • The minimum basic pay of employees will increase from ₹17,000 to ₹27,000.
  • The maximum pay will be revised from ₹1,50,600 to ₹2,41,200.
  • The minimum pension of employees will be increased from ₹8,500 to ₹13,500.
  • The maximum pension will be revised from ₹75,300 to ₹120,600.
  • The revision will apply to non-teaching staff of universities, employees of aided educational institutions, and local bodies.
  • This salary revision will incur an additional expenditure of  ₹20,208 crores per annum and necessary budgetary provisions have been made in the budget of 2024-25.

Siddaramaiah government was under pressure to decide on a pay hike, after the Karnataka State Government Employees Association announced its plans to go on an indefinite strike from August.

In March 2023, the then Chief Minister Basavaraj Bommai gave employees an interim 17 percent salary hike, to which the Siddaramaiah administration is likely to add a 10.5 percentage points hike, which will total to 27.5 percent hike on basic salary, as per the recommendation of the 7th Pay Commission, the sources said.

Also Read: Second international airport needed near Bengaluru: Karnataka Minister MB Patil

(With PTI inputs)

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