50% hike in initial salaries of contract staff in Odisha government

The state government has also increased its contribution to the national pension scheme


Following a state cabinet meeting in Odhisha, Chief Minister Naveen Patnaik announced that the initial salary of all contractual employees in the state would increase by 50 per cent. Amending the contractual appointment rules 2013, the state has taken this decision. Apart from that, these ‘contractual employees’ will now be called as ‘initial appointees’ to give them the assurance that their services will be regularised in the future. As per the law, their services gets regularised after six years.

Also, the Odisha government has decided that all initial appointees will also be covered under the medical reimbursement scheme. That means, their medical expenses will also be reimbursed.

The lowest contractual grade employee in the Odisha government who falls under the Group D category will now draw Rs 12,100 which is up from Rs 8,070. Those who have joined in the Group B category will now draw Rs 25,300, up from the earlier Rs 16,880.

This increase in salary will benefit 26,000 contractual employees and also put an extra burden of Rs 250 crore on the state exchequer. Additionally, the Odisha government will shoulder an expense of Rs 10 crore by revising the medical reimbursement scheme.

The government has also decided to increase its contribution to the National Pension Scheme (NPS), from 10 per cent to 14 per cent, which will further benefit lakhs of pensioners in the state.

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