The State government has announced an interim relief of 27 per cent, claimed to be the highest ever in the State, with effect from January 1, 2014, benefiting 14 lakh employees and pensioners.

The IR, meant to compensate for the delay in the finalisation of the 10 Pay Revision Commission report, was finalised at a three-hour meeting between the representatives of employees associations and the Chief Minister N. Kiran Kumar Reddy here on Thursday.

The interim relief was expected to be announced on January 1 but was deferred following inclusive talks between the employees and Finance Minister Anam Ramanarayana Reddy, who was assisted by Chief Secretary P. K. Mohanty. The employees had demanded 32 per cent IR while the Government was willing to pay 22 per cent.

Addressing a media conference after today’s talks, Mr. Kiran Reddy said 9.5 lakh government employees and 5.5 lakh pensioners and their family members, numbering about 70 lakh, would benefit from the decision. The burden on the State exchequer for the three months till March 2014 would be Rs.1,920 crore.

‘Quite an achievement’

He said the government sanctioned IR despite financial problems and the dip in revenue growth by 9.4 per cent. He acknowledged the employees’ role as partners in implementation of government programmes despite disruptions due to agitations in both regions of the State.

The Chief Minister however did not concede the demand for payment of IR with effect from July 2013, as the PRC was appointed five months early this time and was expected to submit its report soon. The present salary and pension bill allotted in the budget was Rs.51,719 crore and it would go up by Rs.7,681 crore for a year.

Asked whether the governments would be able to foot the enhanced salary and pension bill if the State was bifurcated, he said, “ we will cross the bridge when we come to it.”