Hyderabad: The State government on Friday formally issued orders fixing the fitment benefits for government employees and pensioners along with contract and outsourcing staff at 30 per cent as per the decision taken by the State Cabinet recently approving the recommendations of the Pay Revision Commission (PRC). The revised pay scales of 2020 shall be deemed to have come into force on and from July 1, 2018.
Accordingly, the minimum basic pay has been enhanced from Rs 13,000 to Rs 19,000, while the minimum pension has been enhanced from Rs 6,500 to Rs 9,500 per month. The monetary benefit will be allowed from April 1, 2020, with the arrears for the period April 1, 2020, to March 31, 2021, to be paid at the time of superannuation of the government employee or to the legal heirs in case of demise of the employee. The arrears for the period April 1 to May 31 of 2021 will be paid during the financial year 2021-22. The salary in the revised pay scales will be paid from June 2021 payable in July 2021. The dearness allowance of 30.392 per cent as of July 1, 2018, will be merged in the pay as recommended by the PRC.
Further, the Dearness Allowance (DA) for the State government employees will be regulated at 0.91 per cent for every one per cent (01%) of Dearness Allowance sanctioned to the Employees and Pensioners of Government of India, with effect from January 1 of 2019. As a result, the rate of DA to State government employees and pensioners in Revised Pay Scales of 2020 will be 2.73 per cent as against 3 per cent of the Central Pay Commission (CPC) as of January 1 of 2019 and 4.55 per cent against 5 per cent of the CPC as of July 1, 2019, resulting in cumulative DA of 7.28 per cent.
Though there is a marginal decrease in House Rent Allowance, the ceiling has been lifted for the benefit of the employees and workers. The classification of cities and towns as existing and indicated by the commission will be retained for HRA admissibility. The adoption of the HRA structure will be similar to the recommendations of the 7th CPC at the rates of 24 per cent for GHMC, 17 per cent for other municipal corporations, 13 per cent for towns with a population of 50,000-2 lakh and 11 per cent for other areas, based on classification for the cities and towns, without any ceiling limit.
The government has also enhanced the maximum limit of gratuity from the existing Rs 12 lakh to Rs 16 lakh with the revised gratuity to be paid from June 2021 onwards. Orders have been issued enhancing the monthly remuneration prescribed for contract and outsourced services by 30 per cent, i.e., to Rs 15,600, Rs 19,500 and Rs 22,750 for categories I, II and III respectively, for all types of services engaged on a contract/outsourcing basis, from June of 2021 and payable in July of 2021