Karnataka govt announces 58.5 percent salary and pension hike for state employees

CM Siddaramaiah has announced a 58.5% increase in salaries and pensions for Karnataka government employees, effective from August 1, 2024.

Karnataka Chief Minister Siddaramaiah on Tuesday announced a significant increase in the salaries and pensions of state government employees. Starting August 1, 2024, the new pay structure, as recommended by the Seventh Pay Commission, will boost salaries and pensions by 58.5 per cent based on the basic pay from July 1, 2022, news agency PTI reported.

Under the new plan, employees will also see a 31 per cent Dearness Allowance (DA) added to their basic pay.

This pay revision will also include a 32 per cent increase in House Rent Allowance (HRA) for employees. Under the new plan, employees will also see a 31 per cent Dearness Allowance (DA) added to their basic pay, along with a 27.50 per cent fitment increase.

CM Siddaramaiah detailed the changes, stating that the minimum basic salary will rise from ₹17,000 to ₹27,000, while the maximum salary will go from ₹1,50,600 to ₹2,41,200. Pensions will also see a rise, with the minimum increasing from ₹8,500 to ₹13,500 and the maximum going from ₹75,300 to ₹1,20,600.

The revised pay structure will apply to non-teaching university staff, employees of aided educational institutions, and local body workers. This adjustment will lead to an additional annual expense of ₹20,208 crore, which has been accounted for in the 2024-25 state budget.

The Seventh State Pay Commission was set up on November 19, 2022, to review and recommend changes to pay, allowances, and pensions for government employees. The Commission delivered its report on March 24, 2024.

(With inputs from PTI)