Panel moots 30% pay hike for state govt staff

Minimum salary Rs 17K; pensioners to gain too

The Karnataka Sixth Pay Commission has recommended a 30% hike in basic salary for government employees, including pensioners.

The report was submitted to Chief Minister Siddaramaiah by panel chairman and retired IAS officer M R Srinivasamurthy in Bengaluru on Wednesday.

Siddaramaiah said the recommendations of the commission will be placed before the next state Cabinet meeting for approval. With Assembly elections just round the corner, Siddaramaiah, who also holds the finance portfolio, is likely to make an official announcement accepting the recommendations of the commission in his budget speech in the state legislature on February 16.

Karnataka State Government Employees Association has welcomed the commission's recommendations. "We welcome the 30% hike. We had sought a 45% hike. We will try to convince the chief minister about our demand," association president B P Manje Gowda said.

The pay hike will come as a bonanza for 5.2 lakh state government employees, 5.73 lakh pensioners and family pensioners besides 73,000 employees working in aided institutions, local bodies and non-teaching staff of colleges and universities.

The minimum pay in the revised scales will be Rs 17,000 per month (it is Rs 9,600 at present) and maximum pay will be Rs 1,50,600 and allowances, while minimum pension will be Rs 8,500 and maximum pension will be Rs 73,000 per month besides dearness allowance. Family pension will have an upper limit of Rs 45,180 per month with dearness allowances. The commission has recommended that the wages be given with effect from April 1, 2018 for employees and from July 1, 2017 for pensioners.

The additional expenditure to the state government due to the revision of pay, allowances and pensions is estimated at Rs 10,508 crore per year.

The panel has not changed the retirement age of 60 years. However, it has recommended that minimum qualifying service for voluntary retirement be reduced from the present 15 to 10 years, while the eligibility for receiving full pension be reduced from the present 33 to 30 years.

The maximum limit of death-cum-retirement gratuity is proposed to be increased from Rs 10 lakh to Rs 20 lakh. The commission has also recommended payment of additional pensions of 20% to 100% to all pensioners aged above 80 years.

Siddaramaiah told reporters the commission was constituted eight months ago. After consulting various neighbouring states and going through the central pay commission recommendations, the state panel submitted its first report. They have sought three more months for non-salary related issues, Siddaramaiah said.

Besides Srinivasamurthy, the commission has former IAS officer Mohammed Sanaullah and former Controller of State Accounts Department R S Phonde as its members.