Karnataka Government about to instate 7th Pay Commission to over 7 lakhs of State-Employees

The Karnataka government has decided to implement the recommendations of the Seventh Pay Commission, benefiting over seven lakh state government employee

The decision, effective from August 1, comes after significant pressure and demands from various quarters, including employee associations threatening strikes. Chief Minister Siddaramaiah will announce the salary hike during the ongoing Legislative Assembly session in Bengaluru. According to reports, the Seventh Pay Commission has recommended a substantial 27.5% increase in the basic salary of government employees. This increase is estimated to cost the state exchequer an additional ₹17,440.15 crore annually. The decision follows an earlier interim hike of 17% approved in March 2023 by the then Chief Minister Basavaraj Bommai. The current administration under Siddaramaiah plans to add 10.5 percentage points to fulfil the commission’s recommendations. Implementing the pay hike addresses longstanding demands from state employees. It fulfils an electoral promise outlined in the government’s manifesto.

Karnataka minister Priyank Kharge emphasized the importance of meeting these demands, underscoring the government’s commitment to its workforce. The decision also comes amidst financial challenges highlighted by the Karnataka State Road Transport Corporation (KSRTC), which cited significant losses primarily due to schemes like Shakti offering free bus travel for women. KSRTC has proposed a bus fare hike of up to 20% to offset losses exacerbated by rising oil prices, stressing the need for financial adjustments to sustain employee benefits and operations. Salary revisions for KSRTC employees were last conducted in 2020, with further adjustments scheduled for 2024, reflecting ongoing efforts to maintain financial stability amid economic pressures and employee welfare considerations.

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