The Tripura government on Saturday announced 30-35 percent hike in salaries of its 138,300 employees, with retrospective effect from last month.
"After the sixth central pay commission, Tripura is the first among the eight northeastern states that announced new salaries and allowances for its employees, making 30 to 35 percent salary hike with effect from January," state Finance Minister Badal Chowdhury told reporters after a cabinet meeting.
Nearly 40,000 pensioners will also benefit from the new pay scale, he said.
An unmarried and non-earning daughter as well as the widow of a government employee would get family pension, the minister added.
The pay review committee, set up in August last year to revise the salaries and allowances of the government employees and pensioners, had recommended a salary hike last month.
"The committee, while recommending higher pay and allowances of the state government employees, has followed the guiding principles of the Sixth Central Pay Commission recommendations," Chowdhury said.
After the implementation of the new pay scales, the minimum salary at the entry level of a group D employee would be Rs.5,730 and maximum would be Rs.50,400.
The government has also announced that it will provide retirement benefit after completion of 25 years of service (qualifying years) instead of existing 33 years.
According to the minister, an additional expenditure of Rs.9 billion (Rs.900 crore) would be incurred annually from the state exchequer to provide higher salaries and allowances to the employees and pension holders.
In the new package of pay scales, medical, house rent allowances and non-practicing allowances for doctors and ration and kit allowance for police personnel have been raised.
"To meet the additional financial burden, the government would intensify the austerity drive and borrow loan from the market besides to take other measures," Chowdhury said.