Kerala Govt employees’ pay revision likely before budget; new salaries from March

Kollam: The government may announce the 12th pay revision for state government employees before the Budget. Procedures are progressing in a manner that would allow the revised salaries to be paid from March. The revision will have retrospective effect from July 1, 2024. Popular announcements, including the withdrawal of the contributory pension scheme, are also expected. An increase in welfare pensions is assured, with indications that the amount will be moved towards ₹2,500, in line with the Left Democratic Front’s election promise.

Instead of a Pay Revision Commission, the government-appointed officials’ committee has prepared a formula. The announcement will be made as soon as a political decision is taken. During the previous pay revision, the new basic pay was fixed by multiplying the existing basic pay by 1.37 times. At that time, a 27 per cent dearness allowance and a 10 per cent fitment benefit together resulted in a 37 per cent increase. This time, an increase of 38 per cent is indicated. The new basic pay will be 1.38 times the existing basic pay. Multiplying the current basic pay by 1.38 will give the revised basic pay. This formula is said to have received approval in principle. Accordingly, the minimum basic pay would be ₹31,740.

There is also said to be a favourable stance on paying dearness allowance arrears. A final decision has not been taken on the period for which arrears will be paid. There is a possibility of merging this amount with the Provident Fund. In the last Budget, it was announced that an ‘Assured Pension Scheme’ would be implemented in place of the contributory pension scheme. The framework and notification for the new pension scheme will be issued shortly.

Under this scheme, which assures a fixed pension, the government’s contribution will increase. The state government’s own tax revenue stands at ₹93,000 crore. At present, ₹70,000 crore is being spent on salaries and pensions. With the implementation of the pay revision, the entire tax revenue may have to be spent on salaries and pensions.

CPM-affiliated service organisations are staging a day-and-night protest in front of the Secretariat on January 12 and 13, demanding the immediate implementation of the pay revision, sanctioning of dearness allowance arrears, granting retrospective effect to approved DA, and the restoration of the old pension scheme. It is reported that the announcement is likely to follow this agitation.