RAJYA SABHA Q&A Seventh Pay Commission
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
QUESTION NO 3625
ANSWERED ON 12.08.2014
Seventh Pay Commission
3625 SHRI NARAYAN LAL PANCHARIYA
Will the Minister of FINANCE be pleased to satate :-
(a) the likely financial burden on the States as a result of constitution of Seventh Pay Commission in the country;
(b) whether State Governments were consulted before the constitution of Seventh Pay Commission, if so, the details thereof; and
(c) whether Government would contribute its share to lessen the financial burden of States, if so, the details thereof?
MINISTER OF STATE IN THE MINISTRY OF FINANCE
(SMT. NIRMALA SITHARAMAN)
(a) Service conditions of State Government employees fall within the exclusive domain of respective State Governments. Therefore, State Government employees are not covered within the terms of reference of the 7th central Pay Commission. Thus, the recommendations of Commission will not directly apply to State Government employees. Accordingly, it is not possible for the Central Government to indicate the financial burden on State Governments, if they decide to adopt the recommendation of the 7th Central Pay Commission in respect of their employees with or without modification.
(b) The Central Government had sought the views of the State Governments and till the date of the constitution of the 7th Central Pay Commission on 28.2.2014, only 14 States had responded. These State Governments generally mentioned, inter-alia, that adoption of the recommendations of a Central Pay Commission by them in case of State Government employees adds to substantial financial burden
(c): Since the decision to adopt the recommendations of the 7th Central Pay Commission in case of the State Government employees will exclusively concern respective State Government, the question of any assistance by the Central Government will not arise. However, the Terms of Reference of the 7th Central Pay Commission provide, inter-alia, that while making its recommendations, the Commission will also keep in view the likely impact of the recommendations on the finances of the State Governments, which usually adopt the recommendations with some modifications.