Pay hike for employees of fair price shops

Approximately 28,000 employees of fair price shops run by cooperative societies have been sanctioned pay hike and perquisites.

Hereafter, newly recruited salesmen will receive a consolidated monthly pay of Rs.4,000 instead of Rs.3,000. Similarly, packers will receive Rs.3,500 against the existing Rs.2,500.

Till now, they were under consolidated pay for five years. Henceforth, this period will be reduced to a year. On completion of a year's service, the salesmen will be covered under the timescale of Rs.3,300-Rs.8,000 and packers, Rs.3,000-Rs.7,000.

The new pay structure will take effect with monetary benefit from January 1, 2011 though it will be deemed to have come into force from January 1, 2010, according to an official release on Tuesday.

Besides, those salesmen and packers who are serving fair price shops in Chennai and suburban areas will be given monthly allowance of Rs.1,000 and Rs.500. For those working in other areas, the allowance will be Rs.750 for salesmen and Rs.250 for packers.

Dearness allowance, 2.5 per cent annual increment, pay determination after giving selection grade pay hike to those who have served for 15 years and 10 per cent house rent allowance has also been sanctioned. In addition, five per cent City Compensatory Allowance (CCA) will be given to those who are serving fair price shops in Chennai and suburban areas and four per cent CCA to those who working in other areas.

Chief Minister M. Karunanidhi, who sanctioned the pay hike and the provision of perks to the staff, also approved the extension of the government employees' new insurance scheme to the families of salesmen and packers.

According to a senior official in the Food and Civil Supplies Department, 23,000 salesmen and 5,000 packers will benefit from the government decision.