Lok Sabha Question No. 568 (STARRED), answered on 2018-04-06
Subject: Pay Commission Reports
Ministry: FINANCE
Asked by: JOSE K. MANI

Government of India Ministry of Finance Department of Expenditure

## LOK SABHA STARRED QUESTION NO.*568

TO BE ANSWERED ON FRIDAY, THE 06TH APRIL, 2018/

CHAITRA 16, 1940 (SAKA)

## PAY COMMSSION REPORIS

## QUESTION

## *568. SHRI JOSE K MANI:

Will the Minister of FINANCE be pleased to state:

- (a) whether the reports of successive Commissions have been increasing the burden on Government financesl exchequer in partially accepting their recommendations for increase in wages and if So, the details thereof; Pay
- (b) whether the last Commission has suggested productivity linked pay hike to the deserving employees to eliminate below average or mediocre performance and if SO, the details thereof; Pay
- (c) whether such periodic hikes in wages resulting from Commission recommendations   trigger similar   demands from the State   Governmentlpublic   utility employees, imposing burden on already strained State finances and if so, the details thereof; and Pay
- (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 Commission and if so, the details thereof? Pay

## ANSWER

## MINISTER OF STATE IN THE MNISTRY OF FINANCE (SHRIPRADHAKRISHNAN

A Statement is laid on the Table of the House

## Statement Annexed with the Lok Sabha Starred Question 568 dated 06.04.2018 raised by Shri Jose K Mani regarding Commission Reports Pay

- (a) The financial impact of the recommendations of the Central 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 Commission, the Seventh Central Commission, the Government staggered its implementation in two financial years: While the recommendations on pay and pension were implemented with effect from 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 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 Central Commission pertained to only 2 months of the previous financial year of 2015-16. Pay Pay Pay ie:, Pay 7th Pay
- (b) The Seventh Central 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. Pay
- (c) The service conditions of employees 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:

*****