State government employees and pensioners in Karnataka have reason to rejoice. For, Chief Minister D.V. Sadananda Gowda on Wednesday announced a hike in the pay scales, allowances and pensions effective from April 1, 2012.

Reading out the State Budget 2012-13, Mr. Gowda said that the existing dearness allowance and instalment due as on January 1, 2012 would be merged with the basic pay and the pension along with 22.5 per cent increase. This increase will be inclusive of the interim relief sanctioned effective from November 1, 2011, he said.

He said that the revision in pay scales and pensions had been effected after the government accepted the recommendations of the Official Pay Committee, which submitted its report recently. The acceptance of the recommendations on pay and pension revision is estimated to cost the government an additional outgo of Rs. 4,450 crore on a full-year basis, he said.

According to a statement issued by the government after the Chief Minister's budget announcement, the new pay will include basic pay as on April 1, 2012, dearness allowance of 76.75 per cent as on January 1, 2102 and fitment benefit of 22.4 per cent of basic pay inclusive of 15 per cent interim relief.

The statement also points out that existing rates of increments had been doubled. Minimum pay scale has been revised from Rs. 4,800-Rs.7,275 to Rs. 9,600-Rs. 14,550 while the maximum pay scale has been revised from Rs. 28,275-Rs. 39,900 to Rs. 56,550 to Rs. 79,800.

The minimum HRA has been increased from 6 per cent to 7 per cent while the rates of CCA have been increased from Rs. 80-Rs. 300 to Rs. 250-Rs. 400 per month. The rate of medical allowance for group C and D employees has been increased from Rs. 50 per month to Rs. 100.

Retirement benefits

According to the revised pension rates, the minimum monthly pension will be Rs. 4,800, while the maximum pension will be Rs. 39,900. Similarly, the maximum family pension will be Rs. 23,940.

“Pension/family pension of past retirees will be calculated by adding to basic pension/family pension as on April 1, 2012, dearness allowance at 76.75 per cent and fitment benefit of 22.5 per cent subject to a minimum of Rs. 4.800 per month,” the statement added.

Also, the ceiling limit on the death-cum-retirement gratuity (DCRG) has been raised from Rs. 6 lakh to Rs. 10 lakh.

Meanwhile, though the State Government Employees Association has welcomed the announcement, it has urged the government to implement the revised pay scales from April 1, 2011, instead of April 1, 2012.

  • It will cost the government an additional

    Rs. 4,450 crore a year

  • The minimum monthly pension will now

    be Rs. 4,800