State government had agreed to implement 7th Pay Commission a year ago in September, sometime after Central government announced the new pay panel.
The state will have to bear annual expenditure of about Rs 4,500 crore for execution of the Seventh Pay Commission.
The Odisha government announced on Tuesday the implementation of the much-awaited 7th Pay Commission’s recommendations which would benefit around 8 lakh government employees and pensioners and cost the exchequer Rs 4,500 crore.
“We have received the report from the fitment committee and the government is considering to implement the new pay scale for employees soon”, the finance minister said. The commission’s recommendations impacting 33 lakh central government employees, 14 lakh armed forces personnel, and 52 lakh pensioners, was accepted by the government on June 2016. However, in view of the tight financial situation as portrayed by the State Government, it is yet to be decided how to pay the arrear amount. But I think the easiest solution is the simplest, just raise the minimum pay, said a top most central government employees’ union leader on condition of anonymity.
Accordingly, The best way for government to help the lowest earning employees is to raise their pay from Rs 18000 to Rs 25,000, he told the reporter.
The Odisha Government has made a decision to pay salary to its employees as per the recommendations of the Seventh Pay Commission from September 1, 2017. This could help with providing Odisha government employees the benefits of Seventh Pay Commission.