BANGALORE: The Fifth Pay Commission of the State on Saturday recommended a 17.5 per cent increase in the basic pay of the State Government employees.

The Commission, headed by retired bureaucrat M.B. Prakash, submitted its recommendations to Chief Minister H.D. Kumaraswamy and Deputy Chief Minister B.S. Yediyurappa.

According to the recommendations, the minimum increase will be Rs. 525 and the maximum Rs. 4,400. The new basic pay plus Dearness Allowance will be Rs 4,800 a month (from Rs 4,275) at the lowest level and the highest Rs. 39,900 a month (from Rs. 35,431). The minimum pension has been enhanced from Rs. 1,804 per month to Rs. 2,250.

The house rent allowance for employees in Greater Bangalore has been increased from 13 to 15 per cent. The commission has suggested merging of 71 per cent of the dearness allowance with the basic pay.

Grading of towns and cities for the purpose of City Compensatory Allowance (CCA) has been revised. Against the existing rates of CCA of Rs. 40 to Rs. 200, two rates of Rs. 150 and Rs. 300 for Greater Bangalore and Rs. 80 and Rs. 40 for B2 cities have been recommended. Employees working in rural areas with a population of less than 25,000 will get Rs. 100 a month as rural allowance.

The minimum pension, which was Rs. 1804 (Rs. 1055 plus DA of Rs. 749) as on July 1, 2005, in the pre-revised scale, has been revised to Rs. 2250. Pension would determined at 50 per cent of the last pay drawn, as against the existing provision of 50 per cent of last 10 month's average pay, the release said.

The maximum limit for death-cum-retirement gratuity has been increased from Rs. 2.50 lakh to Rs. 3 lakh.

The wage increase will result in an additional burden of Rs. 920 crore to the State exchequer. With regard to pensioners, the financial implication will be Rs. 430 crore in a full year. The recommendations will help over 11 lakh employees, pensioners and family pensioners, aided educational institutions, local bodies and non-teaching staff of universities and colleges.

The commission has said the recommendations had kept in view the pay scales of the Union Government and of the neighbouring States, besides the provisions of the Karnataka Fiscal Responsibility Act, 2002, and developmental needs of the State.

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