Bhopal: The Madhya Pradesh government on Tuesday decided to implement the Seventh Pay Commission recommendations, which will benefit about 6.50 lakh state government employees.
This was decided during a cabinet meeting, chaired by chief minister Shivraj Singh Chouhan, this evening.
According to the decision, the recommendations of the Seventh Pay Commission are being implemented in the state with effect from 1 January 2016, an official from the public relation department of the state government said.
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The arrears of seventh pay between the period of January 2016 to June 2017 would be paid in three installments in May every year, beginning from FY 2018-19.
It is estimated that the payment of arrears would put an extra burden of Rs5,742-crore on the state government.
According to an estimate, this decision would bring 14% increase in the present salaries of the state government employees.
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The official said this would create an additional annual burden of Rs3,828-crore on the state’s exchequer.
For the remaining period of current financial year, there would be an additional burden of Rs2,552-crore on the state government.