Bhubaneswar: There is reason to cheer for state government employees and pensioners. The government has decided to clear arrears towards the revised pay on the basis of the 7th Pay Commission recommendations. These arrears would be paid during 2017-18 and 2018-19 fiscals.

While those in government service will get 40 per cent of their arrears during these two years, the pension holders will be given the entire amount during the same period.

Chief minister Naveen Patnaik announced the decision on Saturday night. The move will benefit nearly 3.5 lakh state government employees and over 2 lakh pensioners.

The move is believed to have taken to please the government employees and pensioners ahead of the general election, which is due next year and the urban local body polls this year.

Earlier in August last year, Naveen had announced to effect pay revision based on the recommendations of the 7th Pay Commission with effect from January 1, 2016. The employees have been drawing revised salary from September.

On March 1, Naveen had ordered for a revision of salary for employees of state public sector undertakings in accordance to 7th pay panel recommendations. Besides, he had also announced a hike in remuneration of contractual employees by about 25 per cent.

Sources said the government had made the announcement keeping in mind the importance of state government employees as a vote bank.

"It is not only their number that is important. Much more important is the fact that they form part of the intelligentsia and can influence voters in other parts of the state," said an Opposition leader adding that the state government invariably prefers to keep its employees in good humour ahead of the elections.