A decision to this regard was taken at the Cabinet Meeting presided over by chief minister Naveen Patnaik.
"The monthly consolidated remuneration of contractual employees will be increased by about 25 per cent at their initial appointment and 10 per cent increase every year till their regularization as per rules," chief secretary A P Padhi told reporters.
Padhi said the Cabinet also approved amendment of the Odisha Group-B Posts (contractual Appointment) Rules, 2013 and Odisha Group-C and Group-D Posts (Contractual appointment) Rule, 2013 in a bid to enhance the remuneration of the contractual employees.
The increased remuneration will be paid from the month of September, 2017. "The contractual employees will also avail the arrears like the regular employees," said finance secretary T K Pandey.
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While the minimum remuneration for the lowest category of contractual employee will be Rs 8,070 at the time of joining, the highest initial amount is fixed at Rs 16,880.
The formulation of pay and pension as per the revised scale approved by State Cabinet will be in 17 different levels starting from level 1 with minimum pay of Rs 16,600.
"Pay and pension are to be fixed in the revised structure by multiplying a factor of 2.57," Padhi said adding that the prevailing revised assured career progression (RACP) scheme is substituted by modified assured career progression (MACP) scheme on the lines adopted by the Government of India, he said.
The existing ceiling of gratuity of Rs 7.5 lakh is enhanced to Rs 15 lakh, Padhi said adding that the minimum pension/family pension is determined as Rs 8,300 in the revised rate.
However, the employees appointed on or after January 1, 2005 and are governed on the new pension scheme, will be extended with DCRG on same terms and conditions as applicable to the employees governed on the OCS (pension) rules, 1992.