KCR gives 30 per cent pay hike to govt employees, ups retirement age by 3 years

9.18 lakh government staff are all set to benefit from the 30% pay hike announced by Chief Minister K Chandrashekhar Rao on the floor of the state Assembly on Monday

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The Telangana government on Monday has declared a 30% pay hike for its employees. Close to 9.18 lakh staff, including those on contract, outsourced and daily wagers are all set to benefit from this announcement by Chief Minister K Chandrashekhar Rao on the floor of the state Assembly.

The government has also proactively increased the retirement age limit from the present 58 years to 61 years. The government intends to make use of experienced staff, said the Telangana CM.

The hike in the salaries is estimated to lay an additional burden of ₹8,000 crore on the exchequer. The Pay Revision Commission (PRC) had recommended 7.5% fitment, projecting an additional burden of ₹2,252 crore. However, the Finance Minister had kept an ₹8,000 crore cushion, while presenting the budget 2021-22 to the Assembly last week.

Rao also announced that the gratuity amount to be paid at the time of retirement of the employee would be increased from the present ₹ 12 lakh to ₹16 lakh.


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People employed in the Home Guards and Anganwadis, Asha Workers, SERP (society for elimination of rural poverty) employees, Vidya Volunteers, Sarva Siksha Abhiyaan employees and all others are slated to benefit from this largesse announced by the government.

While making the announcement, the CM reminded the staff that the state had suffered huge losses on account of the COVID-19 pandemic and the lockdown announced by the Union government.

“The coronavirus disaster had shattered the state economy. Due to an unexpected fiscal deficit, the 11th pay revision was delayed. In the present recuperating economy, we are revising the 11th pay scale in a better manner that will cover all the employees and teachers in the state”, CM Rao said.

After the formation of Telangana state in 2014, the government had announced a special increment as a way of showing appreciation for the role played by government employees in the movement. The employees had received a 43% hike through the 10th pay scales.

The government had also reduced the age limit from 75 years to 70 years for 15% additional quantum of pension to the retired government employees and teachers.