The Odisha government approved the proposal to increase the compensation of all the government contractual employees by about 50% this week. This would also refer to them as ‘initial appointees’.  

The decision was taken during a Cabinet meeting led by Chief Minister Naveen Patnaik. Pratap Jena, Law Minister, Odisha said, “The appointments will be regularised after six years. They will also be able to avail medical expenses like regular employees.” 

Jena said that this initiative will incur an additional investment of around Rs. 250 crores per annum. This announcement comes after the state government announced an 11% hike in the dearness allowance (DA) for its employees and pensioners effective from July 1 this year. 

According to a press release issued by the government, the hike will benefit about 4 lakhs employees of the government along with 3.5 lakhs pensioners. The release further stated that the DA of the government employees with the hike has gone up to 28% from 17%.  

Earlier, the contractual employees were not entitled to additional benefits, but as the recent announcement gets into effect, their medical expenses will be reimbursed.   

Jena further pointed out that the initial appointments of all the Group B, C and D posts will be regulated as per the Contractual Appointment Rules, 2013.