The Andhra Pradesh government raised the wages of outsourced staff working on a contract basis in the energy department on Wednesday, offering significant financial relief to over 27,000 workers.
Y S Jagan Mohan Reddy, the chief minister, announced a 37 per cent pay increase and insurance coverage for outsourced employees. The raise hikes employees' monthly compensation up to Rs 21,000 per month. People recruited on contract or outsourced to work in government departments are paid a set wage with no further benefits. The joint action committee of the Andhra Pradesh Contract and Outsourced Employees Association remarked that the decision to provide group insurance in addition to the salary increase is a significant benefit.
The decision was formally notified by an order issued by the electrical department's special chief secretary. "The move is expected to benefit approximately 27,000 outsourcing employees working in the electricity sector." This significant compensation increase has increased the income of these outsourcing employees to more than Rs 21,000," according to a statement. The government has also required contracting agencies to provide group insurance to employees.
The change is expected to have a good impact on outsourced staff in the power and other departments.