Andhra matches Telangana pay hike of 43% to state employees

This would translate into a Rs 9,285-cr burden on the state exchequer

Andhra Pradesh government declared a 43% fitment to government employees on Monday, just a few days after Telangana chief minister K Chandrasekhara Rao announced the same percentage of hike to employees of the new state.

Even though AP government was not willing to give such a big enhancement in salaries to its employees citing the state financial position, it was forced to follow the footsteps of Telangana government for fear of alienating its employees.

Chief minister N Chandrababu Naidu announced the decision late yesterday evening and said that the new payscale would come into effect from the official date of bifurcation of the state.

The government employees of the two states were granted an interim relief of 27 per cent of their basic pay since January, 2014 in the undivided AP and the balance increase within this 43 per cent fitment would mean an additional financial commitment of Rs 3,610 crore, according to the finance department figures.

Including the IR the additional salary bill from the 43 per cent fitment would translate into Rs 9,284.5 crore, according to the officials. Over 4.5 lakh employees and 3.4 lakh pensioners would benefit from the government decision.