Business Standard

Uttarakhand to up staff salaries by 25 per cent

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Shishir Prashant New Delhi/ Dehra Dun

As a Diwali gift, the Uttarakhand government today decided to implement the new pay committee report that has recommended a 25 per cent increase in the salaries of its employees and a 40 per cent rise in pension amount.

The government would implement the report of the Sushil Kumar Tripathi Pay Committee with effect from January 1, 2006, this was announced following a cabinet meeting here presided over by Chief Minister BC Khanduri.

The implementation of the new wage report would benefit 163,000 government employees and 60,000 pensioners in the hill state.

The government on August 20 had set up the two-member committee headed by Tripathi, a former petroleum secretary, to devise ways and means for the implementation of new wages in accordance with the Sixth Pay Commission. Finance Secretary Radha Raturi was the other member of the panel.

 

The arrears of the employees for the last two years would be deposited to their GPF accounts. Of this, 40 per cent, or Rs 1,900 crore, would be deposited this year and the remaining Rs 3,100 crore would be deposited in the next financial year.

The arrears for the month of September would be paid in cash. The pay scale and daily allowance (DA) for the employees would be same as of their central government counterparts.

The acceptance of the new wage report would put an extra burden of Rs 1,000 crore every year on the state exchequer. This year, the burden would be Rs 744 crore for salaries and Rs 284 crore for pensions.

The state government would set up a sub-committee of the state Cabinet, headed by Health Minister Ramesh Pokhriyal Nishank, to generate new resources for overcoming the financial burden due to the new wage report.

The sub-committee would also suggest methods for cost-cutting and readjustment of employees without affecting the FRBM Act.

Commenting on the new decision, Khanduri said the salaries of the employees have been increased keeping in view the recommendations of the Sixth Pay Commission.

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First Published: Oct 16 2008 | 12:00 AM IST

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