All public servants will get a 10 percent pay hike each month in the new budget or a minimum Rs.1250 increase, whichever is higher, at a cost of Rs.12.5 bn to the state.
This will be the highest increase for public sector workers in the last ten years and will also apply to the Police, the armed services and corporations.
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rnInterim allowances of Rs.1250 introduced in 2000 and the Rs 1000 allowance introduced in 2001 will also be incorporated into the base salary by 2006.rn
rnWith this incorporation, lower level employees will be put on a higher salary scale, with pension scales also higher, Finance Minister K N Choksy said Wednesday.rn
rnFurther increases are to be rolled out in 2005 and 2006 with recommendations of the Tissa Devendra Salaries Commission to be rolled out on a phased basis over the next three years.rn
rnA committee will also be appointed to study options to rationalise and close government agencies over the next year. Its proposals will be taken up for implementation in the ne