Maharashtra government on Wednesday decided to implement the recommendations of the Sixth Pay Commission, a move that would benefit over 13 lakh state employees.
The decision would result in additional burden of Rs 8,091 cr on the state exchequer.
"The recommendations would be implemented from January 1, 2006. Over 13 lakh employees would get an overall hike of 20-30 percent," Chief Minister Ashok Chavan said today after a cabinet meeting.
Arrears of Rs 18,370 crore would be paid to the employees in installments to paid in next five years, Chavan said.
Most of the recommendations of P M A Hakim Committee set up at the state level to review the Sixth Pay Commission have been accepted in December last year.
Some of the major suggestions included increase in Dearness Allowance and Transport Allowance.
Over seven lakh pensioners, who have retired before January 1, 2006 would get a 40 percent raise in pension, he added.
"The recommendations were accepted considering the overall situation and it will in no way affect this year's budget," Chavan said when asked if the additional fiscal burden would affect the next state budget.