Kerala govt clears path for salary hike, drops pay revision commission

Thiruvananthapuram: The state government has decided not to constitute a Pay Revision Commission this time to revise the salaries and pensions of government employees and pensioners. Instead, the task will be entrusted to a bureaucratic-level committee headed by the Additional Chief Secretary (Finance).

Although the Finance Department had earlier taken a decision to appoint the bureaucratic committee, the formal announcement was delayed. However, in view of the massive setback suffered by the LDF in the recent local body elections, the declaration is now expected without further delay.

It was in October 2019 that the Pinarayi Vijayan government appointed the 11th Pay Revision Commission for government employees. The revised pay structure was implemented from March 2021, just ahead of the previous Assembly elections, with retrospective effect from July 2019.

Though the 12th pay revision was due to come into effect from July 2024, the government has repeatedly deferred the decision, citing a financial crisis. While the government had earlier announced that arrears from the previous revision would be disbursed in four instalments, two instalments are still pending.

Previous pay revision
During the previous round of pay revision, 28 per cent of the dearness allowance, including arrears, was merged with the basic salary. To facilitate this, a new formula — basic salary × 1.38 = new basic salary — was introduced.

The government has decided against appointing a Pay Revision Commission this time, as the salary revision can be carried out using a similar formula. Along with a hike in salaries, allowances are also expected to increase. At present, the lowest basic salary stands at ₹23,000, while the highest is ₹1,66,800.