Good news for state govt employees: Karnataka CM announces 58.50% salary, pension hike from August

Karnataka CM Siddaramaiah announces a 58.50% increase in salary and pensions for state government employees based on the 7th State Pay Commission's recommendations. Effective from August 1, with retrospective implementation from June 1, 2022, the move aims to boost minimum pensions to Rs. 13,500 and maximum pensions to Rs. 1.20 lakh, costing Rs. 20,208 crores.

Karnataka Chief Minister Siddaramaiah has announced a significant increase in salary allowances and pensions for state government employees, marking a boost of 58.50%. The decision, based on the recommendations of the 7th State Pay Commission, will come into effect from August 1, with retrospective implementation from June 1, 2022.

Addressing the assembly, Chief Minister Siddaramaiah highlighted that the Pay Commission, constituted in 2022 and submitting its recommendations on March 24, has been pivotal in this decision. The cabinet's approval on Monday solidified the implementation plan.

Under the new adjustments, government employees' basic salaries will see a revision by incorporating 31% gratuity and 27.50% fitment, totalling a 58.50% increase in salary and pension. This move aims to elevate minimum pensions from Rs. 8,500 to Rs. 13,500, and maximum pensions from Rs. 75,300 to Rs. 1.20 lakh. Furthermore, the basic salary floor will rise from Rs. 17,000 to Rs. 27,000, while the ceiling will increase from Rs. 1.50 lakh to Rs. 2.41 lakh.

The implementation is expected to incur an additional cost of Rs. 20,208 crores to the state exchequer. Chief Minister Siddaramaiah assured that despite the financial implications, the government is committed to honoring its obligations towards public servants.

In parallel proceedings, the Vidhan Parishad witnessed heated debates over the Valmiki Development Corporation scandal, with accusations and counter-accusations leading to the adjournment of the session. The scandal, involving alleged illegal money transfers and political ramifications, underscored the contrasting narratives within the legislative assembly.