Bihar clears pay bonanza

The Bihar government today okayed the seventh pay commission scale in what will come as a bonanza to its employees, pensioners and schoolteachers working on contract.

By Dev Raj in Patna
  • Published 17.05.17
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Patna, May 16: The Bihar government today okayed the seventh pay commission scale in what will come as a bonanza to its employees, pensioners and schoolteachers working on contract.

The pay scale will have "notional" effect from January 1, 2016, but "actual" effect from April 1, 2017, which means that a person's salary structure on January 1, 2016, will be applied to the formula of "basic pay + grade pay x 2.57", but s/he will get the monetary benefits from April 1 this year.

Gratuity for state government employees will also go up from Rs 10 lakh to 22 lakh.

The decision was taken at a cabinet meeting that chief minister Nitish Kumar chaired at the state secretariat this evening. The three-member state pay commission headed by former Bihar chief secretary G.S. Kang had submitted its report to the chief minister yesterday.

The house rent, dearness, travel, and medical allowances are yet to be decided. The reason attributed to the delay is that the Union government is yet to notify the allowances on which the state will base its own.

The state government has already extended the tenure of the state pay commission by two months to fix the allowances for employees and pensioners.

"The seventh pay commission scale is expected to bring a hike of around 14 to 15 per cent in the salaries of employees," finance department principal secretary Ravi Mittal told reporters.

"The increased pay and pension will cast a burden of around Rs 6,500 crore per year on the state exchequer."

The state government has around 3.65 lakh employees, around 6 lakh pensioners and 3.6 lakh teachers on contract.

Under the seventh pay commission scale, salaries of government employees will range from Rs 18,000-56,900 to Rs 1,44,200-2,18,200 in two brackets spread across 14 levels as per the category of job and seniority.

The cabinet approved the master plan area for five cities - Ara, Gaya, Muzaffarpur, Saharsa, and Biharsharif - and approved proposals to set up two private universities: Sandeep University at Sijaul in Madhubani district and KK University at Biharsharif in Nalanda district.

The cabinet also approved the "economical housing and slum rehabilitation and redevelopment policy 2017" of the urban development and housing department, under which the Bihar State Housing Board, urban local bodies or planning authorities will have to reserve for people belonging to the economically weaker sections (EWS) and low-income group half of the area of their housing projects and private developers will have to reserve 15 per cent of the area.

The cabinet also approved Rs 1.82 crore to set up an investment commissioner's office in Mumbai to woo industrialists to invest in Bihar.