Bengaluru:The Karnataka cabinet on Monday decided to implement the recommendations of the 7th Pay Commission effective from August 1, official sources said.

The Chief Minister is expected to make an announcement regarding the pay hike to more than 7 lakh state government employees in the Legislative Assembly on Tuesday, the sources said.

The 7th Pay Commission, headed by former chief secretary K Sudhakar Rao, has recommended a 27.5 percent hike on basic salary of government employees.This is expected to cost the government exchequer an additional Rs 17,440.15 crore annually.

Siddaramaiah government was under pressure to decide on a pay hike, after the Karnataka State Government Employees Association announced its plans to go on an indefinite strike from August.

In March 2023, the then Chief Minister Basavaraj Bommai gave employees an interim 17 percent salary hike, to which the Siddaramaiah administration is likely to add a 10.5 percentage points hike, which will total to 27.5 per cent hike on basic salary, as per the recommendation of the 7th Pay Commission, the sources said.

On February 28, 2014, the UPA government led by Manmohan Singh established the 7th Pay Commission, which is presided over by Justice Ashok Kumar Mathur. Shri Vivek Rane (IAS), Dr. Rathin Roy (economist and Director, NIPFP), and Smt. Meena Agarwal (secretary, administrative expert) are the other members of the Seventh Pay Commission.

On September 5, 2016, the government enacted, with some minor adjustments, the recommendations of the 7th Pay Commission, including those pertaining to the armed forces. 

On March 7, 2018, the government had raised the Central Government's dearness allowance by 2 percent in compliance with the established formula based on the Seventh Pay Commission's proposal.

(agency inputs)