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Bengaluru: The Karnataka government on Tuesday announced a 12.50 per cent increase in the salaries of employees and officers working in the state’s four road transport corporations, bringing relief to over one lakh staff members who had been demanding wage revision for several months.

The revised pay scale will be applicable retrospectively from April 1, 2025, covering employees of the Karnataka State Road Transport Corporation, Bangalore Metropolitan Transport Corporation, North West Karnataka Road Transport Corporation and Kalyana Karnataka Road Transport Corporation.

According to the government order, the existing basic pay being drawn by officers and employees as of March 31, 2025, will be enhanced by 12.50 per cent, and all pay scales, including higher and selection grade scales, will be revised accordingly.

Transport employees’ unions had strongly demanded a 25 per cent salary hike and had raised the issue during meetings with Karnataka Chief Minister Siddaramaiah and Transport Minister Ramalinga Reddy. The unions had also urged the government to implement the revised pay structure retrospectively from 2024. However, the government has now approved a 12.50 per cent hike effective from April 2025.

The revised salaries will be implemented from the July 2026 payroll cycle, and eligible employees will start receiving the enhanced salaries from then on. The government has also clarified that arrears for the period between April 1, 2025, and June 30, 2026, will be paid in phases depending on the financial condition of the transport corporations.

Officials said the wage revision would impose an additional financial burden of approximately Rs 72.80 crore per month and Rs 873.64 crore annually on the four transport corporations combined. Around 1.05 lakh employees are expected to benefit from the revision.

The government also highlighted that arrears related to the March 2023 wage revision were already being cleared in phases. Of the total pending arrears amounting to Rs 1,271.92 crore, the first instalment of Rs 450 crore has already been released and credited to employees’ bank accounts.

The announcement comes amid continuing pressure from transport workers’ unions, which had earlier warned of protests and statewide agitation over salary revision and pending dues. The latest decision is expected to provide temporary relief to employees, although union leaders are likely to continue pressing for a higher wage increase in the coming months.