Salary hike: ₹8,000 cr burden on exchequer

Salary hike: ₹8,000 cr burden on exchequer

Revision Done After Gap Of Over Two Yrs

Roushan.Ali@timesgroup.com

Hyderabad:  03.01.2021

Chief minister K Chandrasekhar Rao’s decision to hike the salaries of over 9.36 lakh employeesislikely to put an additional burden of Rs 8,000 crore per annum on the state exchequer if the government agrees to give over 40% fitment to the employees.

It cost Rs 6,500 crore per annum to the government in 2015 when 43% fitment was extended to nearly five lakh employees, including pensioners. Now, the CM has announced salary hike for 9.36 lakh government, contract, outsourcing and all category of employees, including pensioners.

On the other hand, the governmentislikely tosaveRs2,000 crore to Rs 3,000 crore per annum by increasing the retirement age of employees asitwould nothave to pay gratuity and other retirementbenefits.

Though a lot would depend upon how much fitment the pay revision commission (PRC) wouldsuggest,the reportofwhichis likely to be submitted in a day or two, the employees are expecting the CM to be magnanimous this time too as the revision is being done after a gap of two-and-a-halfyears. The PRC had recommended 29% fitment in 2015 but the CM gave 43% to the employees as a reward for their role in the Telangana statehood agitation.

As per tradition, the CM holds a meeting with leaders of various employees’ unions wherein they put forward their demands including the percentage of fitment. Union leaders said they were expecting the CM to call them for a meeting in a dayor two. They would also be meeting the chief secretary-led committeein thefirstweekof January, as directedby thechief minister.

Before the pandemic, the joint action committee (JAC) of all categories of employees had demanded 63%fitmentin representations submitted to the PRC and also the CS. However, the employees are unlikely to insist for 63% fitment keeping in view of the financial position of thestate.

Telangana non-gazetted officers’ association president and JAC leader M Rajender told TOI that they understand the financialcondition of thestatebutwould definitely like to place before the government what they deserve keeping in viewof theincreasein prices of all essential commoditiesin thelasttwo-and-a-half-years.