The State Government on Monday set up a six-member Fitment Committee to chalk out modalities for implementation of the Seventh Pay Commission recommendations for its employees.
The panel was asked to submit its report to the Government in four months.
The committee would be headed by Development Commissioner R Balkrishnan while Home Secretary Asit Tripathy, Finance Secretary Tuhin Kant Pandey, Forest and Environment Secretary Suresh Mohapatra and Special Secretaries of Finance Department AK Meena and Aswini Mishra would be its other members.
Around four lakh State Government employees and over three lakh pensioners would benefit from the move.
The Seventh Pay Commission headed by Justice AK Mathur had recommended a 23.55-per cent overall hike in pay, allowances and pensions for Central Government employees with effect from January 1 this year.
An official estimation has pegged the pay revision requirement at about Rs 5,500 crore annually in Odisha. Currently, the State Government pays Rs 29,836 crore per annum towards salaries and pensions.