Karnataka Chief Minister Siddaramaiah announced on Tuesday a significant increase in salaries and pensions for state government employees, following the Seventh Pay Commission's recommendations.
Effective from Aug. 1, the revision will see a substantial 58.5% rise in basic pay from July 1, 2022.
Additionally, house rent allowances are set to increase by 32%, aligning with the Commission's guidelines. Siddaramaiah highlighted these decisions from a recent Cabinet meeting held on July 15, emphasising the government's commitment to enhancing employee compensation and pension benefits.
Accordingly, the salary and pensions will be revised by adding 31% Dearness Allowance and fitment of 27.50% to the basic pay of the employee as of July 1, 2022, he said.
"This will increase the basic salary and pension of the employees by 58.5%. There will be an increase of 32% in house rent allowance," the statement read.
"The minimum basic pay of employees will increase from Rs 17,000 to Rs 27,000. The maximum pay will be revised from Rs 1,50,600 to Rs 2,41,200. The minimum pension of employees will be increased from Rs 8,500 to Rs 13,500, and the maximum pension will be revised from Rs 75,300 to Rs 1,20,600," according to Siddaramaiah.
The revision will be applicable to non-teaching staff of universities, employees of aided educational institutions, and local bodies, he said.
This salary revision will incur an additional expenditure of Rs 20,208 crore per annum and necessary budgetary provisions have been made in the budget of 2024-25, the chief minister said.
The Seventh State Pay Commission was constituted on Nov. 19, 2022 to address the demands for revision of pay, allowance, and pension of state government employees. The Commission submitted its report on March 24 this year.
(With inputs from PTI)
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