Salary hike to cost additional Rs 20,208 crore, says CM Siddaramaiah

Announcing a salary hike for government employees, Chief Minister Siddaramaiah on Tuesday said that the move will cost an additional expenditure of Rs 20,208 crore per annum.

Making a statement in the Assembly, Siddaramaiah said the salary, allowances and pensions of government employees will be revised with effect from August 1 as per the recommendations of the 7th Pay Commission.

“Accordingly, the salary and pensions will be revised by adding 31% Dearness Allowance and fitment of 27.50 per cent to the basic pay of the employee as on July 1, 2022,” Siddaramaiah said. “This will increase the basic salary and pension of the employees by 58.50 per cent. There will be an increase of 32 per cent in house rent allowance,” Siddaramaiah said. 

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. The maximum pension will be revised from Rs 75,300 to Rs 1,20,600. “The revision will be applicable to non-teaching staff of universities, employees of aided educational institutions and local bodies,” Siddaramaiah said. 

Siddaramaiah also said that necessary budgetary provisions have been made in the 2024-25 budget.