KCR announces 30% pay hike to all govt employees; retirement age increased to 61

The decision was taken based on the recommendations made by the 11th pay revision commission (PRC) headed by retired IAS officer C R Biswal.

Hyderabad: Telangana chief minister K Chandrasekhar Rao on Monday announced 30 per cent fitment on basic pay for all government employees totaling 9,17,797, including outsourcing and contract workers. The pay hike will be in effect from April 1.

The decision was taken based on the recommendations made by the 11th pay revision commission (PRC) headed by retired IAS officer C R Biswal. The earlier pay revision for the employees was done in 2014 soon after the formation of Telangana when the government gave a historic 43 per cent pay revision for the employees.

Admitting that there was a delay in the implementation of pay revision due to COVID-19 that crippled the state’s economy completely, KCR said that the government decided to implement this pay revision to the best possible extent, as the financial position of the state is gradually limping back to normal.

The announced salary hike will be extended to all the government employees, grant-in-aid employees, work-charged employees, daily wages employees, fulltime contingent employees, part-time contingent employees, pensioners among others.

The three-member commission of the retired IAS officers, comprising CR Biswal as chairman, C Umamaheswara Rao and Mohammed Ali Rafath as members, was constituted by the Telangana government in May 2018. The CR Biswal committee submitted its report on December 31, 2020 to chief secretary Somesh Kumar after the PRC ‘bonanza’ announcement by the chief minister K Chandrasekhar Rao.

The commission recommended a fitment of 7.5 per cent on basic pay, which came as a rude shock to employees who thought it to be a meager pay hike after a wait of over 30 months. Several employee unions took to the street to express their unhappiness.

Retirement age increased to 61 years

Besides, KCR also announced that the government has also decided to increase their retirement age from existing 58 years to 61 years. The enhancement in superannuation age was an assurance given in the ruling Telangana Rashtra Samiti (TRS) manifesto in December 2018.

“With an aim to utilize the services of experienced employees, I announce the enhancement of retirement age limit and this decision will come into effect immediately,” KCR said in the assembly.

Other announcements

The chief minister said the government has decided to pay arrears of salary hike for the last 12 months to the employees, despite the fact that the state’s financial position was precarious due to drastic fall in revenues. The arrears would be paid to the employees along with their other retirement benefits, he said.

KCR also announced increase in the retirement gratuity to be paid to all the employees from the present Rs 12 lakh to Rs 16 lakh.

“Similarly, the government has decided to reduce the age of eligibility for the retired employees from 75 to 70 years for the payment of additional quantum of pension of 15 per cent,” he said.

KCR announced constituting a steering committee with representatives of employees’ unions and government officials to work out new guidelines for the implementation of the Employees’ Health Scheme (EHS) for the state government employees, on the lines of CGHS being implemented for the central government employees.

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