Tamil Nadu chief minister announced a Dearness Allowance hike

Tamil Nadu chief minister M Karunanidhi on Saturday announced a Dearness Allowance (DA) hike of 8% for state government employees, teachers and pensioners with retrospective effect from January 1, 2010.

The hike was declared following the recent increase in the DA allowance for Central government employees, an official release said. The state exchequer would incur an additional expenditure of Rs 1447.76 crore per annum due to the hike.

Despite severe financial burden, the state government announced in May 2009 the implementation of the Sixth Pay Commission, thereby increasing the salaries of government employees between Rs 1,775 and Rs 7,300 per month. The government will be paying the Sixth Pay Commission arrears of Rs 11,093 crore in three annual instalments, which will go up to the financial year 2011-12.

The state has been incurring hefty expenditure every year on salaries to its about 12 lakh employees and teachers and around 5 lakh pensioners. Due to the increased expenditure, the estimated revenue deficit of Rs 1,024 crore at the time of budget presentation in 2009 went up to Rs 5,020 crore at the end of the financial year. The government cited the implementation of the Sixth Pay Commission’s recommendations as the main reason for this.

The estimated revenue expenditure for the year 2010-11 has been pegged at Rs 66,488.19 crore, of which Rs 23,000 crore will be spent towards staff salaries and pensions, accounting for about one-third of the total expenditure. Associations of state government employees and teachers welcomed the announcement. Office-bearers of the Tamil Nadu Secretariat Association called on Karunanidhi at his Gopalapuram residence and thanked him for the DA hike.

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Tamil nadu Government announced revision in pay and allowances to chief engineers

The Government on Monday announced revision in pay and allowances ranging from Rs 1400 to Rs 19510 per month across various cadres in TNEB from Mazdoors to chief engineers. The revision will take effect from December 1, 2007 ( it is due from December 1, 2006) and a formal wage accord for four years will be signed with the unions soon.

The State Minister for Electricity board, Arcot N Veerasamy said the revision will benefit about 76,000 employees and officers, 84,000 pensioners and 10,000 contract workers. While the board will have to shell out Rs 1200 crore towards arrears payment, the revision will entail an annual additional expenditure of Rs 625 crore.

A revised work norm will also be implemented along with the revision in wages and allowances, the Minister said.
Despite the EB suffering a loss of Rs 7000 crore and struggling to cope with the power shortage, it has been forced to go in for a wage revision. It is expected to be bailed out by the State Government by stepping up the subsidy or providing other financial accommodation.

While there are 18 trade unions in TNEB, a majority of the workmen are represented by the unions affiliated to LPF, the DMK’s TU wing, CITU, AITUC and an independent federation.Though the two left parties ( CPI and CPM) are in the opposition camp and fought the Lok Sabha elections in alliance with AIADMK, even the leftist unions are pleasantly surprised by the liberal wage revision in TNEB. More surprising is the good deal given to pensioners.

Sources in CITU said while the contract workers were expecting their daily wage to be fixed at Rs 250, it has been raised by Rs 50 to Rs 120 per day. The sources also wanted the Government to give a fair deal to about 3500 part time staff by extending them the salary being paid to noon meal staff. The EB had issued an order to this effect in 1997 but not implemented so far.

Political circles viewed the wage revision in TNEB in the context of the ruling DMK’s game plan to retain the vote bank of Government employees and the working class at the time of assembly election due in May 2011.

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Tamil Nadu Government announced a hike in pay scales of teachers

Tamil Nadu Government announced a hike in pay scales of teachers of university, government and aided colleges.

Professors of universities and colleges would now get Rs 62,085 per month from the existing pay scale of Rs 40,344, Chief Minister M Karunanidhi told reporters here.

Newly appointed lecturers would get Rs 26,352 per month from the current pay scale of Rs 19,680.

"The new wages would be given with effect from January 1, 2006 and full cash benefits would be given from January 1, 2007," he said, adding the arrears would be given in three instalments.

Karunanidhi said with regard to other allowances, the beneficiaries would get them on par with Central Government staff.

He said the scale hike would benefit about 20,000 teachers and the hike would cost the state exchequer Rs 557.49 crore per year.

As advised by the UGC, the pay scales of librarians, assistant librarians, physical education directors, deputy and assistant physical education directors would also be revised. They would also receive pension, family pension and other pensionary benefits, as given to the government employees.

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