Bengaluru: In a major relief for employees of Karnataka’s state-run transport corporations, the state government has approved a 12.5% salary hike for more than one lakh workers and officers employed across the four road transport undertakings. The revised pay structure will come into effect retrospectively from April 1, 2025, according to an official government order issued on Tuesday.
The decision will cover staff working under the Bengaluru Metropolitan Transport Corporation (BMTC), Karnataka State Road Transport Corporation (KSRTC), Kalyana Karnataka Road Transport Corporation (KKRTC), and North Western Karnataka Road Transport Corporation (NWKRTC). The move is expected to place an additional burden of nearly Rs 72.8 crore per month, taking the annual financial impact to approximately Rs 873.6 crore.
Officials said the revised salaries will begin reflecting in employee pay from July 2026, while pending arrears from April 2025 onward will be cleared in a phased manner depending on the financial condition of the transport corporations. Government estimates indicate that the corporations are already carrying salary-related liabilities of over Rs 7,130 crore.
The announcement comes amid growing pressure from transport employee unions, which had threatened an indefinite statewide strike beginning May 20 if their wage revision demands were not addressed. However, several unions expressed dissatisfaction with the government’s decision, arguing that the approved increase falls short of their demand for a 25% salary revision in line with benefits extended to other state government employees under the Seventh Pay Commission framework.
Union leaders have termed the government’s move “unilateral” and signalled that the proposed strike may still continue unless further negotiations take place. Employees are also demanding the clearance of pending arrears dating back to earlier wage revision periods.
In a parallel move, the Karnataka government has also approved a 1.5% increase in dearness allowance (DA) for state government employees and pensioners. The DA has been revised from 14.2% to 15.7%, effective from January 1, 2026. The increase is expected to benefit nearly 5.2 lakh government employees, around three lakh board and corporation staff, and nearly 4.5 lakh pensioners across the state.
The latest salary revision is being viewed as a significant administrative and financial decision by the Karnataka government, particularly at a time when transport corporations are grappling with mounting operational costs and fiscal stress.
