Karnataka Chief Minister Siddaramaiah on Tuesday said the salary and pension of the state government employees will increase by 58.5 per cent to the basic pay as of July 1, 2022 as recommended by the Seventh Pay Commission.

The revision of salary and pension will come into effect from August 1 this year and will see a 32 per cent increase in the house rent allowance.

As per the recommendations of the Commission, the salary, salary-related allowances, and pensions of government employees will be revised with effect from August 1, 2024, as decided in the Cabinet meeting held on July 15, Siddaramaiah said in a statement.

Accordingly, the salary and pensions will be revised by adding 31 per cent Dearness Allowance and fitment of 27.50 per cent to the basic pay of the employee as of July 1, 2022, he added.

"This will increase the basic salary and pension of the employees by 58.50 per cent. There will be an increase of 32 per cent in house rent allowance," the statement read.

"The minimum basic pay of employees will increase from Rs 17,000 to Rs 27,000. The maximum pay will be revised from Rs 1,50,600 to Rs 2,41,200. The minimum pension of employees will be increased from Rs 8,500 to Rs 13,500, and the maximum pension will be revised from Rs 75,300 to Rs 1,20,600," according to Siddaramaiah.

The revision will be applicable to non-teaching staff of universities, employees of aided educational institutions, and local bodies, he added.

This salary revision will incur an additional expenditure of Rs 20,208 crore per annum and necessary budgetary provisions have been made in the budget of 2024-25, the chief minister said.

The Seventh State Pay Commission was constituted on November 19, 2022 to address the demands for revision of pay, allowance, and pension of State government employees. The Commission submitted its report on March 24, this year.

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