Pay revision for government employees is becoming a major dispute for Andhra Pradesh and Telangana government. Payment of salaries and pensions of nearly 12 lakh employees and pensioners is on state revenue. Further hike will push both the states into bankruptcy.
The 10th Pay Revision Commission, headed by P.K. Agarwal, has recommended hike of 29 per cent salary, for that each state would impose a burden of over Rs 3,500 crore. In the meantime, employees’ unions are troublesome up to 69 per cent hike. At present Telangana salary bill is Rs 18,400 crore per annum and AP’s Rs 22,000. The tax revenues of Telangana have been put at Rs 35,300 crore.
Both Govts are convincing employees’ unions to accept a hike lower than the 29 per cent. The committee has approved a minimum salary of Rs 13,000 per month and a maximum salary of Rs 1.10 lakh but the employees’ are demanding of Rs 15,000 and Rs 1.37 lakh respectively. At present, it is in the range of Rs 6,700 and Rs 44,740.
From July, 2013 the revised pay scales would come into force stated the committee. If approved, the governments will owe arrears of 19 months salary, which alone works out to nearly Rs 30,000 crore for each state. Both the states want to extend the cut off.