New Delhi/Bhubaneswar: Bringing Holi cheers to over eight lakh state government employees and pensioners, the Odisha government has announced it will implement recommendations of the 7th Pay Commission for PSU employees.

The implementation of 7th pay commission benefits in the state will come into effect from January 1, 2016.

Chief Minister Naveen Patnaik has directed the concerned department for revision of salary of state PSUs, as per recommendations of the 7th Pay Commission.

Though the state government had earlier on August 29, 2017 announced salaries for government employees in accordance with the recommendations of the commission, no decision was taken for PSU employees.

Media reports had earlier said that the central government might offer some respite to the lower-level employees of pay matrix between level 1 and 5 with reports coming in that may hike the fitment formula 3.68 times of basic pay of 6th pay commission.

The central government employees unions have been demanding for hiking minimum pay of Rs 18,000 to Rs 26,000. They have also demanded that fitment factor be raised from 2.57 times to 3.68 times.

Media reports now say that the government may go beyond the fitment factor of 2.57 times that were recommended by the 7th Pay Commission and approved by the Cabinet.

The Union Cabinet had in June approved recommendations of the CPC with 34 modifications, which will mean an additional annual burden of Rs 30,748 crore on the exchequer.

The new scales of pay provide for entry-level basic pay going up from Rs 7,000 per month to Rs 18,000, while at the highest level i.e. Secretary, it would go up from Rs 90,000 to Rs 2.5 lakh. For Class 1 officers, the starting salary will be Rs 56,100.

All allowances are given effect from July 1, 2017.

The recommendations benefit over 1 crore employees. This includes over 47 lakh central government employees and 53 lakh pensioners, of which 14 lakh employees and 18 lakh pensioners are from the defence forces.

The Narendra Modi government has vowed to resolve all the payment, arrear, hiked allowances and fitment formula related issues rising out of the recommendation of the 7th Pay Commission.