No proposal is under consideration to abolish system of Pay Commission in future
*568. JOSE K. MANI
Will the Minister of FINANCE be pleased to state:-
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
MINISTRY OF FINANCE
LOK SABHA
STARRED QUESTION NO: 568
ANSWERED ON: 06.04.2018
STARRED QUESTION NO: 568
ANSWERED ON: 06.04.2018
Pay Commission Reports
Question*568. JOSE K. MANI
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 more 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 have been
implemented with effect from 01.07.2017 after an examination by a
Committee. 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.
Source – lok sabha