Government Opens Treasury: Major Salary Hike For Karnataka State Employees

The Karnataka government has decided to grant state employees a significant salary increase by implementing the 7th Pay Commission's recommendations. This decision, made during a cabinet meeting on Monday, will boost employees' salaries but will also put extra pressure on the government's finances.

According to a PTI report, official sources stated that the Karnataka Cabinet met on Monday and decided to implement the Seventh Pay Commission's recommendations starting August 1, 2024. This will lead to a salary increase for employees. The state Chief Minister Siddaramaiah may announce the pay raise for over seven lakh state government employees in the Assembly on Tuesday.

Karnataka government employees have long been asking for the implementation of the 7th Pay Commission's recommendations. This positive development comes after the Karnataka State Government Employees Union announced plans for an indefinite strike starting in August. The Siddaramaiah government has responded by granting employees this significant benefit.

The decision by Karnataka CM Siddaramaiah to raise state employees' salaries will benefit them but will also heavily strain the state treasury. The Seventh Pay Commission, led by former Chief Secretary K Sudhakar Rao, recommends a 27.5% increase in basic salaries. This increase is expected to add an annual burden of Rs 17,440.15 crore on the government's finances.

Last year, Karnataka's then Chief Minister Basavaraj Bommai gave state employees a 17% interim salary increase. Now, the Siddaramaiah government is expected to add another 10.5% hike. This means that, based on the Seventh Pay Commission's recommendations, employees' basic salaries will rise by a total of 27.5%.

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