BENGALURU: The Sixth State Pay Commission on Wednesday submitted its first report to Chief Minister Siddaramaiah, recommending a 30 per cent hike in basic salary, and also in pensions. The Commission has recommended a downward revision in house rent allowance (HRA) to 24%, 16% and 8% depending on the classification of cities, instead of the existing 30%, 20% and 10%. But the HRA component increases by 40% by virtue of upward revision of salaries.
The Commission has also recommended a hike in pension for those aged above 80 — 20% for those aged 80-85 years; 30% for 85-90 years; 40% for 90-95 years; and 50% for 95-100 years old. The pension hike will be 100% for those above 100. If implemented, the Commission has recommended that wages be revised from April 1, 2018, with retrospective effect from July 1, 2017.
The additional expenditure due to revision of pay, allowances and pensions is estimated at Rs 10,508 crore per year. CM Siddaramaiah said the report will be placed before the next cabinet meeting for approval. With elections fast approaching, the cabinet is expected to approve the recommendations with minor changes.
The Commission said there are 5.2 lakh state government employees, 5.73 lakh pensioners and family pensioners along with 73,000 employees working in aided institutions, local bodies and non-teaching staff of colleges and universities. The recommendations, however, do not cover revision of pay of All India Services and judicial officers who are drawing National Judicial Pay Commission pay scales, and teaching staff drawing from UGC/AICTE pay scales.
The Commission stated that minimum pay will be Rs 17,000 and maximum pay will be Rs 1,50,600 and allowances; while minimum pension will be Rs 8,500 and maximum will be Rs 73,000 per month besides dearness allowance (DA). Family pension will have an upper limit of Rs 45,180 per month with DA. House rent allowance is recommended to be revised to 24%, 16% and 8% of the revised basic pay, replacing the existing 30%, 20% and 10%, respectively.
The Sixth State Pay Commission, which submitted its first report to Chief Minister Siddaramaiah has not changed the retirement age of 60 years, but has recommended that minimum qualifying service for voluntary retirement be reduced from 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 is proposed to be increased from Rs 10 lakh to Rs 20 lakh.
Siddaramaiah told reporters that the commission was constituted eight months ago. After consulting various neighbouring states and going through the Central Pay Commission recommendations, the State Commission has submitted its first report. They have sought three more months for recommendations on non-salary related issues.
“The first report will be placed before the Cabinet for approval,’’ he said. The last revision was done in 2012. He also said the revision will be announced in the state budget.M R Sreenivasa Murthy, chairman of the Commission, said that in Karnataka (including Mysore state), there have been 11 pay revision for employees since 1956. Sometimes, it was the Commission recommendations and sometimes by committees.
The pay and allowances were last revised in 2012. “We have only addressed issues related to revision of pay, allowances and pensions. We had sought pay commission reports of Andhra Pradesh and Kerala. Based on that and other consultations, we have come to this conclusion. We have, however, not touched upon issues like five working days in a week, anomalies in pay scales of individual cadres of employees and other issues in our first report. These issues will be taken in our second report,’’ he added.
WHAT IT MEANS
Increase in 30% pay will benefit 5.20 lakh government employees and 73,000 employees of aided institutions.
Pension hike by 30% from July 1, 2017 will benefit 5.73 lakh pensioners and family pensioners.
OTHER RECOMMENDATIONS
Minimum service for VRS: 10 yrs instead of 15
Retirement age: Unchanged at 60 yrs
HRA rate revision: 24%, 16% and 8% instead of 30%, 20% and 10% of basic pay. But HRA component by 40%
More pension: Pensioners aged 80-85 will get 20% more, those aged 85 to 90 years will get 30% more, 90-95 years, 40% more; 95 to 100 years, 50% more and for those aged over 100, the hike will be 100%.