7th Pay Commission: Karnataka govt to announce pay hike for over 7 lakh state employees. Details here

7th Pay Commission: The Karnataka cabinet has decided to implement the recommendations of the seventh Pay Commission effective from August 1, news agency PTI reported citing official sources. The Chief Minister is set to announce a salary increase for over seven lakh state government employees during the Legislative Assembly session.

While speaking on the Seventh Pay Commission recommendations, Karnataka minister Priyank Kharge told reporters, "Seventh Pay Commission was one of the demands of the people and it was also there in our manifesto. Yesterday we brought it into the Cabinet and it will benefit around 14 to 15 lakh state employees..."

According to PTI report, the 7th Pay Commission, led by former chief secretary K Sudhakar Rao, has suggested a 27.5 percent increase in the basic salary of government employees, which is expected to cost the government exchequer an additional ₹17,440.15 crore annually. 

This descision came as there was pressure on the Siddaramaiah government to approve a salary increase, particularly after the Karnataka State Government Employees Association said that it would launch an indefinite strike in August.

Sources told PTI that, "In March 2023, the then Chief Minister Basavaraj Bommai gave employees an interim 17 per cent salary hike, to which the Siddaramaiah administration is likely to add a 10.5 percentage points hike, which will total to 27.5 per cent hike on basic salary, as per the recommendation of the 7th Pay Commission.

Earlier on 15 July, the Karnataka State Road Transport Corporation (KSRTC) had planned to propose a bus fare hike of up to 20 per cent, citing significant financial losses. Over the past three months, the KSRTC reported a loss of ₹295 crore, primarily due to the Shakti scheme, which offers free bus travel for women in Karnataka, PTI reported.

KSRTC Chairman SR Srinivas had said, “The last bus ticket price increase was in 2019. It has been five years since then without any increase. Due to the rise in oil prices, a fare hike is inevitable. To increase salaries and provide benefits to employees, adjusting the rates is necessary." He also noted that salary revisions for KSRTC employees were done in 2020 while the next revision is scheduled for 2024.

(With inputs from PTI)