Indian state raises outsourcing employee salaries by 25%

ODISHA, INDIA — In a significant move, Odisha Chief Minister Naveen Patnaik announced a 25% salary increase for outsourcing employees working through Service Provider Agencies in various government departments.
This decision comes after the employees presented their grievances to 5T Chairman Karthik Pandian.
The Chief Minister’s announcement includes not only the salary hike but also the implementation of experience-based remuneration and a grievance redressal system. Additionally, timely gratuity payments have been assured to outsourcing employees.
To ensure prompt payment, arrangements have been made for salaries to be disbursed at the end of each month.
Female employees have also been granted maternity leave benefits, with up to 120 days of leave available for the birth of their first two children.
To further support the workforce, the Chief Minister also established the Odisha State Outsourcing Employees Ombudsman, which aims to resolve disputes between employees and Service Provider Agencies.
Moreover, workers with experience will now receive an additional remuneration of more than 1,000 rupees per month for every five years of service.
Nodal officers will be appointed in each department to streamline the complaint process. A Software Application will also be developed to facilitate the submission of grievances by both employees and agencies.
The Chief Minister’s office also assured that outsourcing employees currently receiving increased wages will continue to do so under the new system.
Departments are expected to make supplementary agreements with Service Providing Agencies to ensure the smooth implementation of these changes.
In 2021, outsourced state government employees in Odisha also received a 25% increase in their monthly salaries, a maximum of 12 days off per year, and guaranteed maternity leaves.
That same year, the Orissa High Court (OHC) ordered the state government to regularize the data entry operators working in four outsourcing departments in Odisha, India.