The Karnataka cabinet has made a significant decision, approving the implementation of the seventh Pay Commission recommendations. These recommendations will come into effect from August 1st, bringing a much-anticipated salary increase for over seven lakh state government employees. The news was reported by the Press Trust of India (PTI), citing official sources.
The Chief Minister is expected to formally announce the details of this salary hike during the upcoming Legislative Assembly session. The 7th Pay Commission, led by former chief secretary K Sudhakar Rao, has proposed a substantial 27.5 percent increase in the basic salary of government employees. This increase is projected to cost the government exchequer an additional ₹ 17,440.15 crore annually.
The decision to implement these recommendations follows pressure from the Karnataka State Government Employees Association. The association had threatened to launch an indefinite strike in August if their demands for a salary increase were not met.
Earlier this year, in March 2023, the then Chief Minister Basavaraj Bommai had granted employees an interim salary hike of 17 percent. The current administration, led by Siddaramaiah, is likely to add another 10.5 percentage points to this, bringing the total increase to 27.5 percent as per the 7th Pay Commission’s recommendation.
The announcement regarding the salary hike comes amidst discussions about a potential increase in bus fares by the Karnataka State Road Transport Corporation (KSRTC). The KSRTC had proposed a fare hike of up to 20 percent, citing significant financial losses. Over the past three months, the KSRTC has reported a loss of ₹ 295 crore, primarily attributed to the Shakti scheme, which offers free bus travel for women in Karnataka.
The KSRTC Chairman, SR Srinivas, stated that the last bus ticket price increase occurred in 2019, and a fare hike is now unavoidable due to rising oil prices. He also highlighted the need to adjust fares to accommodate salary revisions for KSRTC employees, which were last done in 2020, with the next revision scheduled for 2024.
