Gandhinagar (PTI): Gujarat government has on Wednesday formally approved the recommendations of Sixth Pay Commission and announced that the state would implement the same from April 2009 with retrospective effect from January 2006, government sources said.
“The State Cabinet has accepted the recommendations and decided to extend the benefits of the Sixth Pay Commission to the State government employees,” Government Spokesperson Jaynarayan Vyas said.
He added that implementation of pay commission would mean revision in the pay structure of 4.5 lakh State government employees, which would cause financial burden of Rs 2,900 crore per annum on the state treasury.
Moreover, the government would have to pay arrears from January 2006 to March 2009 in five yearly installments, he added.
“The State would forward five installments of 20 per cent each in the five year lock-in period directly in the provident fund (PF) account of the employees,” Vyas said, adding that the employees would be able to withdraw the amount only after five year lock-in period.
According to Minister of State for Finance Saurabh Patel, the State would have to pay Rs 6,883.87 crore in arrears in five years.
- PTI
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