The increase will range between Rs. 700 per month and Rs. 13,160

A seven-per cent pay hike for about 81,000 employees of the Tamil Nadu Generation and Distribution Corporation (Tangedco) was announced by Chief Minister Jayalalithaa on Wednesday.

The move would entail an additional expenditure of Rs. 252 crore to the Corporation annually. At present, the employee cost is around Rs. 2,400 crore annually. The increase, which took retrospective effect from December 1, 2011, would be in force till November 30, 2015.

The hike would cover 70,820 workers and 10,160 officers, totalling 80,980 employees. The seven per cent increase would be made, taking into account the basic pay and grade pay of employees. In monetary terms, this would mean a minimum rise of Rs.700 per month and a maximum of Rs. 13,160.

An increment or three per cent hike would be given to those who served 10 years and more. In the case of employees who were in selection grade (which pertains to those who have got no promotion after 10 years of service) and in special grade (no promotion after 20 years of service), increment would be given to them, as in the case of the government staff. Those who reached the maximum level in the time scale of pay would be given “stagnation increment” every year.

The existing system of scale of pay, grade pay, allowances and special pay would continue, besides the existing three-per cent increment. Those who join duty would have to undergo training for a maximum period of one year, after which they would be put on time scale pay.

However, in the case of those who took part in training that was less than one year and were holding posts, the existing system would apply.

The payment of arrears (December 2011 to December 2013) would be made in two equal instalments – one in January and another, three months later.

This would cost Rs. 525 crore to the Tangedco, Ms Jayalalithaa said, adding that the decision on wage revision had been made, after several rounds of discussion between trade unions and a committee of officials.

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