Odisha Govt. To Decide Pay And Allowances Of MC Employees

12 June,Bhubaneswar

Odisha Government decided to fix the pay, allowances and pensionary benefits of the employees of the various Municipal Corporations to ensure uniformity in pay and allowances among the employees of Corporations.

The decision was taken at the state Cabinet meeting held here under the chairmanship of Chief Minister Naveen Patnaik Thursday.

Briefing newspersons after the meeting, Chief Secretary G C Pati said payment of pay and allowances to the Corporation employees at par with the government employees would put unnecessary financial burden on the government as the financial capacity of all the Muncipal Corporation is not the same.

Every Municipality has not the same financial capacity which depends upon their internal revenue generation capacity and grants received from various sources.

Some Corporations do not have sufficient funds to pay DA to their employees as announced by the government from time to time for government employees.

The government decided to amend the sub section (3) of section 119 of Odisha Municipal Corporation Act 2003 to ensure uniformity in respect of payment of pay and allowances among the Corporation employees.

The Sub Section (3 ) of section 119 of the Odisha Municipal Corporation provides that pay, allownces and pensionary benefits of the Municipal Corporations should be at par with employees of similar cadre under the government.

Section 81 of the Odisha Municipal Act 1950 empowers the state to make rules relating to pay and allowances of the employees of the Muncipalities covered under the Local Fund service.

The sub rule (1) of rule 4 of the Odisha Local Fund service Rules 1975 has provision that LFS cadre employees will get the pay and allowance at par with the government employees.

But the sub rule has been amended.As per the Amendment the pay and allowances of the employees of the Local Fund service would be decided by government from time to time.
As the salary of the employees of Urban Local bodies including Municipal Corporations are to be borne by concerned ULBs from their own sources discretion be given to every municipality to determine pay and allowances of its employees.

The salary expenditure of concerned ULB including Municipal Corporation should not exceed the limit of 35 per cent of their own source