The state government of Karnataka declared a steep 27.5 per cent hike in state government employees' salaries, effective from August 1st. The move may benefit more than seven lakh state government employees long awaiting the implementation of the 7th Pay Commission recommendations. Though this move might cost an additional expenditure of about Rs.17,440 crore every year on the state exchequer, it is aimed towards the betterment of the lives of the employees and bringing its pay structure nearer to that of central government employees.
The decision was cleared in the cabinet meeting some time ago, chaired by Chief Minister Siddaramaiah. The CM is shortly expected to declare it officially. The 'sweet news', as Deputy Chief Minister DK Shivakumar put it, has been confirmed to government employees in Karnataka.
The revision of salary is done given the relentless effort of the Karnataka State Government Employees Association, which had threatened an indefinite strike from August if their demands regarding pay increase were not taken seriously. This proactive stance from the state government—coming to the front regarding this issue—is, therefore, the move to ensure high morale and appropriate remuneration considering the changing economic conditions.
In March 2023 itself, staff received a provisional increase of 17 per cent; the present move has just added another 10.5 per cent. The move will set in line the pay structure of Karnataka with the structured recommendations of the 7th Pay Commission. The 7th Pay Commission, adopted for central government employees, took up a new structure of the pay matrix and increased the minimum wage per month to Rs 18,000, besides enhancing the minimum pension by 2.57 times to lend special emphasis to the commitment of the government toward improving living standards and retirement benefits for public sector workers in the country.
Though adjustments and issues remain, particularly in the allowances and benefits of some sectors like the Armed Forces, the firm step taken by Karnataka is likely to become a precursor for other states also facing the same issue. The whole case is an indication of harmonizing state-level benefits with the centrally evolved guidelines; though there are some differences between state and central employees over some allowances and benefits, they are almost identical.
