GOVERNMENT OF INDIA
MINISTRY OF FINANCE
LOK SABHA
UNSTARRED QUESTION NO:
1652
ANSWERED ON: 27.07.2018
Pay Commission Reports
RAJENDRA AGRAWAL
Will the Minister of
FINANCE be pleased to state:-
(a) whether the reports
of successive Pay Commissions have been increasing the burden on Government
finances/exchequer in partially accepting their recommendations for increase in
wages and if so, the details thereof;
(b) whether the last Pay
Commission has suggested productivity linked pay hike to the deserving
employees to eliminate below average or mediocre performance and if so, the
details thereof;
(c) whether such periodic
hikes in wages resulting from Pay Commission recommendations trigger similar
demands from the State Government/public utility employees, imposing burden on
already strained State finances and if so, the details thereof; and
(d) whether the
Government is considering an alternative for increasing the salaries and
allowances of Central Government employees and pensioners in future instead of
forming Pay Commission and if so, the details thereof?
ANSWER
MINISTER OF STATE IN THE
MINISTRY OF FINANCE (SHRI P. RADHAKRISHNAN)
(a) The financial impact
of the recommendations of the Central Pay Commission, as accepted by the
Government, is normally pronounced in the initial year and gradually it tapers
off as the growth in the economy picks up and fiscal space is widened. While
implementing the recommendations of the last Central Pay Commission, i.e., the
Seventh Central Pay Commission, the Government staggered its implementation in
two financial years. While the recommendations on pay and pension were
implemented with effect from 01.01.2016, the recommendations in respect of
allowances after an examination by a Committee have been implemented with
effect from 01.07.2017. This has moderated the financial impact of the
recommendations. Moreover, unlike the previous 6th Pay Commission, which
entailed substantial impact on account of arrears, the impact in the year
2016-17 on account of element of arrears of revised pay and pension on the
present occasion of the 7th Central Pay Commission pertained to only 2 months
of the previous financial year of 2015-16.
(b) The Seventh Central
Pay Commission in Para 5.1.46 of its Report proposed withholding of annual
increment in the case of those employees who are not able to meet the benchmark
either for Modified Assured Career Progression (MACP) or regular promotion
within the first 20 years of their service.
(c) The service
conditions of employees of State Governments fall within the exclusive domain
of the respective State Governments who are federally independent of the
Central Government. Therefore, the concerned State Governments have to
independently take a view in the matter.
(d) No such proposal is
under consideration of the Government.
