Implementation of 7th Pay Commission for Karnataka State Government Employees

The state government of Karnataka has declared a salary increment of 17 percent for its employees.

Karnataka state government employees went on an indefinite strike after their demands for the implementation of the 7th Pay Commission and other facilities were not met. However, they withdrew their protest after Chief Minister Basavaraj Bommai announced a 17% salary hike from April 1st. The CM also stated that a committee will be formed to submit a report on reintroducing the Old Pension Scheme. Over 27,000 government employees in Mysuru district supported the strike called by state government employees.

Striking Government Employees in Karnataka for 7th Pay Commission

The 7th Pay Commission recommendations, which are being sought by the striking government employees in Karnataka, are estimated to create an additional cost of approximately ₹20,000 crore for the state treasury each year. On February 28, Chief Minister Basavaraj Bommai said that the implications of carrying out the Pay Commission’s recommendations or its interim report must be analyzed. Sources in the government remarked that the 40% fitment as well as other demands will lead to an extra expenditure of over ₹11,000 crore towards salaries and pensions. Since there are around 3 lakh workers in various universities, funded organizations, and other state services, the total cost to the public purse can be quite exorbitant.

Demands of KSGEA on 7th Pay Commission

In 2018, the 6th Pay Commission granted a 30 per cent increase to salaries of government employees in Karnataka, amounting to Rs 10,508 crore. The raises became effective from July 2017. Despite the five-year review being scheduled for July of last year, it was not undertaken. The Bommai government established the 7th Karnataka Pay Commission in November 2022 and set a six-month timeline. However, with state elections approaching in the near future, some employees under the KSGEA have been demonstrating for an immediate interim announcement. They have put forward a demand for a 40 per cent salary hike.

DA Increase 2.25% of Basic Pay

The 7th Pay Commission recommendations were approved by the Karnataka State Government in April 2018. The implementation of the new pay scale for state government employees was effective from 1 July 2017, with arrears being paid from 1 April 2018. The new pay scale includes an increase in the basic pay of employees by 14.22% and a 2.25% increase in the dearness allowance. The minimum pay for state government employees has been fixed at Rs. 17,000 per month, and the maximum pay has been capped at Rs. 2,25,000 per month. The government has also increased the gratuity limit from Rs. 10 lakh to Rs. 20 lakh for employees who retire or die in service. The implementation of the 7th Pay Commission recommendations is expected to benefit around 6.5 lakh state government employees and pensioners in Karnataka.

Interim Relief of a 17% increase in basic salary

According to Karnataka Chief Minister Basavaraj Bommai, the 7th Pay Commission will be implemented in Karnataka for state government employees in the year 2023-2024, and the budget allocation for it has already been made. However, state government employees had demanded immediate implementation of the new pay system, among other demands such as a 40% increase in basic salary and revision of salaries as per the 7th Pay Commission report. After a state-wide strike starting on March 1, the government has agreed to an interim relief of a 17% increase in basic salary and will set up a committee to examine the feasibility of returning to the old pension scheme. The strike has been called off, but there is no intention of withdrawing it until the government provides an order to do so.

Constitution of 7th Pay Commission in Karnataka – Notification issued on 19.11.2022

The full text of the notification issued by the Karnataka Government on 19th November 2022 is reproduced and given it below for your ready reference. [Click to view more]

The article mentioned earlier draws upon information from multiple internet resources.