Odisha CM announces Holi bonanza for state PSU employees, state govt to implement 7th Pay Commission salary hike recommendations

The Odisha government brought smiles to over 8 lakhs state govt PSU employees on Holi by announcing that it will implement the salary hike recommendations of the 7th Pay Commission. 

Chief Minister Naveen Patnaik has directed the concerned department for revision of salary of state PSUs, as per recommendations of the 7th Pay Commission. The implementation of 7th pay commission benefits in the state will come into effect from January 1, 2016.

The government had approved the recommendations of the 7th Pay Commission in June 2016 and raised minimum pay from Rs 7,000 to Rs 18,000 month with fitment factor 2.57 times. Since then, the central government employees have been asking to raise minimum pay to Rs 26,000 and fitment factor 3.68 times.

There had been reports that the government was planning to hike minimum pay to Rs 21,000 with fitment factor 3.00 times, beyond the recommendations of the 7th Pay Commission. However, an official confirmation never came. The government has reportedly formed a panel to take the final call on a hike in minimum pay and fitment factor beyond the recommendations of the 7th Pay Commission.

Though the state government had earlier on August 29, 2017 announced salaries for government employees in accordance with the recommendations of the commission, no decision was taken for PSU employees.