7th Pay Commission in Odisha: Pay hike before festive season to benefit 8 lakh employees

BT Online   Bhubaneswar     Last Updated: August 30, 2017  | 16:17 IST
7th Pay Commission in Odisha: Pay hike before festive season to benefit 8 lakh employees

Odisha government has agreed to implement recommendations of the Seventh Pay Commission from next month, just in time before the festive season kicks off. Around 4.5 lakh state government employees and 3.5 lakh pensioners stand to benefit from the hike in pay and pension. This, however, will put a burden of Rs 4,500 crore on the state exchequer every year.

Odisha government has decided to extend Seventh Pay Commission benefits from September 26, considering the festive season starting from September 27 with the onset of Durga Puja. Employees will receive these benefits with retrospective effect from January 1, 2016. State government had agreed to implement 7th Pay Commission last year in September, sometime after Central government announced the new pay panel.

The methods of paying the arrears to Odisha state government employees are yet to be decided, though. Odisha government could pay the arrears to its staff in instalments or can deposit the amount in their general provident fund (GPF) accounts.

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A fitment committee set to determine the pay hike levels has also submitted its recommendations, but they are yet to be made public.

The state government might face difficulties in awarding the benefits of the Seventh Pay Commission to its employees on account of the financial troubles it is going through right now. The government has reportedly taken Rs 17,133 crore loans from open markets for various purposes already.

However, Odisha government has recently resolved its dispute with Indian Oil Corporation and is expected to receive Rs 2,200 to Rs 2,400 in tax revenue from the Paradip oil refinery of the state-owned oil company. This could help with providing Odisha government employees the benefits of Seventh Pay Commission.

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