State Government Pay Hike Of 39%
3rd round of talks between state government employees’ JAC and government agrees hike to come into effect from April 2010
28th Jan, 2010: A new fitment policy that sees a revision in the pay of state government employees has been announced under the recommendations of the 9th Pay Revision Commission (PRC).
At the 3rd round of talks between the Joint Action Committee (JAC) of state government employees, teachers and workers, and the CM Rosaiah on Wednesday, it was agreed to give a 39% hike for its staff as well as for pensioners.
The decision will benefit around 13.5 lakh employees, and will put an additional burden of Rs. 2,700 crores per annum on the government, in addition to the Rs. 2,904 crore per annum incurred from October 2008 when a 22% interim relief as declared. The annual expenditure towards the wage bill of regular staff and terminal benefits of pensioners is now being pegged at Rs. 27,900 crores.
Arrears of employees and pensioners will be deposited into their general provident fund from February 2010, while the cash component will be given from March, which means the hike will come into effect from April 1.
The decision breaks the deadlock on the issue, when in the 19 January meeting the JAC had demanded a pay hike of 41% while the government was willing for 38%.
N Raghuveera Reddy, D Prasada Rao and P Sabitha Indra Reddy were part of the Cabinet sub-committee constituted to speak to the JAC. The JAC leaders present were JAC chairman Gopal Reddy and secretary general K Swamy Goud.