Salaries and allowances of officers and other employees

(1) All officers and other employees of a municipality including the officers referred to in section 55 shall receive salaries and allowances out of the Municipal Fund. (2) The municipality may also provide for pension, gratuity, provident fund, incentive, bonus, reward or penalty for its officers and other employees in accordance with such rules, norms, scales and conditions as may be prescribed by the State Government,