Karnataka govt approves 12.5 pc pay hike for transport employees
Bengaluru: The Karnataka government has announced a 12.5 per cent increase in the basic pay of employees of the state’s four transport corporations, bringing relief to more than 1.05 lakh workers. The revised salaries will be credited from this month’s payroll, while the revision will take retrospective effect from April 1, 2025.
According to the government order, employees of the Karnataka State Road Transport Corporation (KSRTC), Bengaluru Metropolitan Transport Corporation (BMTC), North Western Karnataka Road Transport Corporation (NWKRTC), and Kalyana Karnataka Road Transport Corporation (KKRTC) will receive the enhanced basic pay beginning with the July salary.
The government has directed all four transport corporations to implement the revised pay structure while disbursing salaries for the current month. The order also states that the wage revision will be effective retrospectively from April 1, 2025.
As part of the implementation, the government has already released the first instalment of arrears payable to employees for the period prior to the revision. The remaining arrears are expected to be paid in subsequent instalments as per the government’s schedule.
The 12.5 per cent hike is expected to benefit nearly 1.05 lakh employees working across the four state-run transport corporations. Officials said the pay revision will impose an additional financial burden of approximately Rs 72.80 crore on the state exchequer every month.
The decision fulfils a long-pending demand of transport employees, who had been seeking a revision of their wages for several months. Employee unions had repeatedly urged the government to implement the revised pay structure in view of rising living costs and inflation.
The pay hike was approved during the tenure of Transport Minister Ramalinga Reddy, following discussions with employee representatives and officials of the transport corporations.
With the revised pay structure now coming into effect, employees are expected to receive the enhanced salary directly in their bank accounts
from this month onwards. The implementation of the revised wages is expected to provide significant financial relief to transport workers and their families while boosting employee morale across Karnataka’s public transport sector.This post was last modified on July 2, 2026 11:30 am