The Odisha government on Monday decided to enhance monthly remuneration of all contractual employees in the government sector and bring them under purview of medical reimbursement scheme.

The Cabinet chaired by Chief Minister Naveen Patnaik approved the proposal of amending the Contractual Appointment Rules 2013 and increasing the remuneration by 50%. Henceforth, they will be treated as ‘initial appointee’ instead of ‘contractual employee’.

The decision assumes significance with the panchayat and civic body polls likely to be held early next year.

“As per the existing rule, the service of all the contractual employees is regularised after six years. Now, from day one, they will get 50% higher salary than that of present level,” said Pratap Jena, Law Minister.

Mr. Jena said, “These initial appointees can get the medical expenses reimbursed like regular government employees.”

In another important decision, the State government has increased its contribution towards national pension scheme from 10% to 14% in respect of the employees covered under NPS. This decision will come into effect retrospectively from April 1, 2019.