7th Pay Commission: This government approves 27.5 percent salary hike for seven lakh employees | Personal Finance News

BENGALURU: The Karnataka cabinet on Monday decided to implement the recommendations of the seventh Pay Commission effective from August one, official sources said. The Chief Minister is expected to make an announcement regarding the pay hike to more than seven lakh state government employees in the Legislative Assembly on Tuesday, the sources said.

The 7th Pay Commission, headed by former chief secretary K Sudhakar Rao, has recommended a 27.5 percent hike on basic salary of government employees. This is expected to cost the government exchequer an additional Rs 17,440.15 crore annually. Siddaramaiah government was under pressure to decide on a pay hike, after the Karnataka State Government Employees Association announced its plans to go on an indefinite strike from August.

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, the sources said.