Govt yet to take full shape; no discussion took place on banning Bajrang Dal: Parameshwara

Bengaluru: The Karnataka cabinet on Monday approved implementation of the Seventh Pay Commission’s recommendations, effecting a 27.5% increase in basic pay from August 1, 2024, and benefiting 12 lakh state govt employees and pensioners.

The commission, led by former chief secretary K Sudhakar Rao, was constituted in November 2022 with a six month mandate.

The final report was submitted to chief minister Siddaramaiah before Lok Sabha elections were announced in March 2024.

The commission’s recommendations include raising the minimum salary for govt employees from Rs 17,000 to Rs 27,000 a month.

The implementation is expected to widen the revenue expenditure of the Karnataka govt by Rs 20,000 crore annually. The most considerable expenditure will be the burden of Rs 7,409 crore for salaries, followed by Rs 3,791 crore for pensions and family pensions each year.

The decision comes after the previous BJP govt, just before the 2023 assembly elections, granted interim relief with a 17% salary hike for govt employees, leaving the remaining 10.5% for future discussions.

After Congress govt took office, it faced pressure to fulfil five poll guarantees and delayed the decision.

The employees, during an executive committee meeting held recently in Chikkamagaluru, decided to launch a three-phase protest culminating in an indefinite strike planned from July 29. This appears to have pressured the govt.

"We welcome the decision for providing employees with 27.5% salary hike," said Shadakshari, state president of Karnataka state govt employees' association.

The Supreme Court on Monday dismissed Karnataka Deputy Chief Minister D K Shivakumar's petition challenging the CBI's FIR against him in a disproportionate assets case.

The bench, comprising Justices Bela M Trivedi and S C Sharma, stated it would not interfere with the Karnataka High Court's decision.

The case involves allegations by the CBI that Shivakumar accumulated assets disproportionate to his income from 2013 to 2018. 

The FIR was initially filed in September 2020, with an investigation mandated to be concluded within three months by the high court.

Bengaluru: Apex IT industry body Nasscom has expressed deep disappointment and concern over Karnataka's quota-for-locals bill mandating reservation for locals in private sector, and has exhorted the state government to withdraw the bill.

Nasscom's strong note of dissent assumes significance as it adds to the growing chorus of top industry voices, which have warned that the legislation would erode the state's edge in technology, and reverse the progress made so far.

The IT industry body has sought an urgent meeting with state authorities to discuss the concerns and "prevent the state's progress from being derailed", the association said.

"Nasscom members are seriously concerned about the provisions of this bill and urge the state government to withdraw the bill. The bill's provisions threaten to reverse this progress, drive away companies, and stifle startups, especially when more global firms (GCCs) are looking to invest in the state," a Nasscom release said.

Stating that the tech sector contributes to 25 per cent of the state GDP, houses a quarter of the country's digital talent, has over 11,000 startups and 30 per cent of the total GCCs, Nasscom contended that the restrictions could force companies to relocate as local skilled talent becomes scarce.

"In today's highly competitive landscape, knowledge-led businesses will locate where talent is as attracting skilled workers is crucial for success... For states to become a key technology hub a dual strategy is key - magnet for best talent worldwide and focussed investment in building a strong talent pool within the state through formal and vocational channels," it said.

The technology sector has been crucial to Karnataka’s economic and social development, with Bengaluru known globally as India's Silicon Valley.

"The technology sector contributes almost 25 per cent of the state GDP and has played a key role in enabling higher growth for the state, higher per capita income than the national average. With over a quarter of India’s digital talent, the state houses over 30 per cent of the total GCCs and around 11,000 start-ups," it said.

Nasscom rued that it is "deeply disturbing" to see this kind of bill which will not only hamper the growth of the industry, but impact jobs and the global brand for the state.

The Karnataka State Employment of Local Candidates in the Industries, Factories and Other Establishments Bill, 2024 was approved by the state cabinet on Monday, and it seeks to reserve 50 per cent of management positions and 75 per cent of non-management positions in the private sector for locals.

The Bill has triggered controversy and criticism from across industry. Industry veteran Mohandas Pai termed the Bill "very regressive", and "draconian".