Only 57 percent of the scheduled BEST fleet was operational on Monday morning following the strike.
Major staffing shortages persist, with attendance for drivers and conductors significantly below required levels.
Deputy CM Eknath Shinde announced interim pay hikes of Rs 3,000 for BEST staff and Rs 2,000 for wet-lease employees.
The state government plans to modernize the fleet by procuring 5,000 electric buses over the next three years.