Sixth Pay Commission recommends 30% hike for State Government employees

Will it be an election bonanza?

IN A NUTSHELL

• Number of Government employees: Over 5.20 lakh
• Minimum revised pay scale: Rs. 17,000 plus allowances
• Maximum revised pay scale: Rs.1,50,600 plus allowances
• Minimum revised pension: Rs. 8,500 plus DA
• Maximum pension: Rs. 75,300 plus DA
• Family pension upper limit: Rs. 45,180 per month with DA
• Recommended age of retirement: 60 years

Bengaluru: State Government employees will get good news soon as the Sixth Pay Commission, headed by former IAS officer M.R. Srinivasa Murthy, has recommended a 30 percent hike. The report was submitted to Chief Minister Siddharamaiah in Bengaluru this morning.  

The announcement of the pay hike will be made in the State Budget that will be presented by Siddharamaiah, who holds the finance portfolio, on Feb.16. Employees had expected a good hike in view of the upcoming Assembly elections and they had been seeking a pay hike in parity with the Central Government employees.

The Commission was constituted in June 2017 and its recommendations will benefit Government employees numbering over 5.20 lakh. The increase in pay will also be applicable to about 73,000 employees of aided educational institutions, local bodies and the non-teaching staff of Colleges and Universities in the State.

The Commission has also recommended increasing the pension of retired employees and family pensioners by 30% with effect from 1.7.2017. This will benefit about 5.73 lakh pensioners and family pensioners.

The minimum pay in the revised pay scales will be Rs.17,000 and the maximum pay Rs.1,50,600, plus allowances. After revision, the minimum revised pension will be Rs.8,500 with the maximum pension fixed at Rs.75,300 per month, plus Dearness Allowance (DA). Family pension will have an upper limit of Rs.45,180 per month with DA.

The revision of pay and pensions must be effected from July 15, 2017 with the resulting financial benefit being paid from April 15, 2018. The additional expenditure to the State Exchequer is estimated at Rs.10,508 crore per year.

The Commission has recommended continuation of the present age of retirement of government employees at 60 years. However, it has recommended that the minimum qualifying service for voluntary retirement be reduced from the present 15 years to 10 years and the eligibility for receiving full pension be reduced from the present 33 years to 30 years.

The maximum limit of death-cum-retirement gratuity has been proposed to be increased to Rs. 20 lakh from the present Rs.10 lakh. The Commission has recommended payment of additional pension to all pensioners aged above 80 years. The rates of additional pension will be 20% for those between 80 and 85 years, 30% for 85 and 90 years, 40% for 90 and 95 years, 50% for 95 and 100 years and 100% for those aged above 100 years.  The Commission has recommended substantial increases in the rates of other allowances like city compensatory allowance, travelling allowance, uniform allowance and special allowance.