The state's 4.5 lakh government employees and almost 3.5 lakh pensioners will benefit from the implementation of the Seventh Pay Commission's recommendations.
This has come as a Durga puja gift for the employees and pensioners.
The government employees would get the pay hike from the September salary onwards.
Government employees and pensioners have been demanding implementation of the pay commission recommendations from January 1, 2016, as done by the central government.
The enhanced emoluments and higher pension would put a burden of Rs 4500 crore on the state exchequer per annum.
The arrears would be around 9000 crore and the state government is working out on it to be given to the employees and pensioners for 20 months (January 2016 to August 2017), official sources said.
"We have received the report from the fitment committee and the government is considering to implement the new pay scale for employees soon", the finance minister said. The recommendations have been implemented to minimise the pay anomaly.
Odisha government has made a decision to extend Seventh Pay Commission benefits from September 26, considering the festive season starting from September 27 with the onset of Durga Puja.
Employees expressed pleasure as there has been a 14.5 per cent hike in the salary of the employees on an average which works out to 23 per cent if the house rent allowance is included.
The state is contemplating that it would be similar to that of the centre's implementation.