Chennai, Oct 12: Tamil Nadu government on Wednesday approved the recommendations of the 7th Pay Commission or 7th CPC for its employees. The decision was taken at a Cabinet meeting chaired by Tamil Nadu Chief Minister Edappadi K Palaniswami. More than 10 lakh employees of Tamil Nadu government will get the benefits of the 7th Pay Commission. The state government has announced a 20 per cent hike in salaries of its employees with minimum pay fixed at Rs 15, 700. (ALSO READ: Diwali Bonanza For Teachers And Other Updates on Minimum Pay Hike, Arrears)

With the implementation of the 7th Pay Commission‘s recommendations, Tamil Nadu government would incur an additional expense of Rs 14,719 crore annually, announced Chief Minister K Palaniswami. Under the 7th Pay Commission, minimum pay has been hiked to Rs 15,700 from the existing Rs 6,100 while the maximum wage will be Rs 2.25 lakh. The existing maximum wage was Rs 77,000. The revised pay structure was arrived at using the 2.57 fitment factor. There is an increase in allowances including House Rent Allowance or HRA.

Further, the 2.57 multiplication factor had been used to revise pension/family pension, which will be Rs 7,850. Under the 7th Pay Commission, the maximum pension would be Rs 1,12,500 and family pension would be Rs 67,500. The ceiling on gratuity at the time of retirement had been increased from Rs 10 lakh to Rs 20 lakh. The 7th Pay Commission benefits were also being extended to nutritious meal scheme workers, Anganwadi staff and village panchayat officers, the chief minister said.

Tamil Nadu government hiked salaries of its employees after a 5-member High-Level Committee submitted its report on the 7th Pay Commission on September 27. The Union Cabinet approved the recommendations of the 7th Pay Commission on June 28 last year.