Karnataka's Historic Pay Hike: Salaries and Pensions Up by 58.5%

Karnataka Chief Minister Siddaramaiah announced a significant 58.5% increase in the salary and pensions of state government employees. The revision, effective from August 2024, also includes a 32% hike in house rent allowance. This decision, based on the Seventh Pay Commission's recommendations, will cost an additional Rs 20,208 crore annually.

Karnataka Chief Minister Siddaramaiah on Tuesday announced a substantial 58.5% increase in salaries and pensions for state government employees. The hike, as recommended by the Seventh Pay Commission, will come into effect on August 1.

In addition to this, house rent allowance will see a 32% increase, significantly improving the financial benefits for employees. The revised pay and allowances will apply to non-teaching university staff, workers in aided educational institutions, and local bodies with an expenditure of Rs 20,208 crore annually.

The changes elevate the minimum basic pay from Rs 17,000 to Rs 27,000, and the maximum from Rs 1,50,600 to Rs 2,41,200. Pension adjustments will also be made, raising the minimum from Rs 8,500 to Rs 13,500 and the maximum from Rs 75,300 to Rs 1,20,600.

(With inputs from agencies.)