Bhubaneswar: Just before the festive season, Odisha government gave nearly 8 lakh employees a good news. The Naveen Patnaik government had agreed to implement the Seventh Pay Commission recommendations from September 26.
Around 4.5 lakh state government employees and 3.5 lakh pensioners receive the benefits with retrospective effect from January 1, 2016.
Chief Minister Naveen Patnaik informed that the state government employees will get the pay hike from September’s salary onwards.
“My government has decided to implement the recommendations of the committee constituted for examination of 7th Central Pay Commission report and its adoption for the state government employees,” said Chief Minister Naveen Patnaik.
However, this 23% hike in salaries will put a burden of Rs 4,500 crore on the state exchequer every year.
The arrears payments are being worked out, said the Chief Minister. The state government was under constant pressure for some time from employees unions as the the Seventh Pay Commission Recommendations have been implemented with effect from 1 January, 2016 in some states and the central government.
The Pay Commission was set up to extend recommendations regarding the work and salary structure of all civil and military divisions that are employed under the government. Up till now, the government has had seven pay commissions and the 7th pay commission was set up in September 2013. The commission’s recommendations impacting 33 lakh central government employees, 14 lakh armed forces personnel, and 52 lakh pensioners, was accepted by the government on June 2016.
The 7th Pay Commission recommended a 23.55% overall hike in pay, pensions and allowances. It recommended a hike in minimum pay from Rs 7,000 to Rs 18,000 per month and maximum pay at Rs 2,25,000 per month and Rs 2,50,000 per month for the cabinet secretary and others at the same level. The gratuity ceiling was enhanced from Rs 10 to Rs 20 lakh.