No proposal is under consideration to abolish system of Pay Commission in future.

GOVERNMENT OF INDIA 
MINISTRY OF FINANCE 
 

LOK SABHA

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.

Equal Pay for Equal Work: Equal Pay for Daily Wagers/Contract Labourers and Regular Employees

GOVERNMENT OF INDIA

MINISTRY OF LABOUR AND EMPLOYMENT

RAJYA SABHA

STARRED QUESTION NO. 346

TO BE ANSWERED ON 28.03.2018

EQUAL PAY FOR DAILY WAGERS/CONTRACT LABOURERS AND REGULAR EMPLOYEES

346. DR. SATYANARAYAN JATIYA:

Will the Minister of LABOUR AND EMPLOYMENT be pleased to

state:

(a)the policy of “equal pay for equal work” and the effective measures taken for the implementation of the same; and

(b)in reference to (a) above the measures taken to ensure equal payment to daily wagers and contract labourers employed in institutes, establishments and companies of Government and

private sector as is being given to regular employees employed there?

ANSWER

MINISTER OF STATE(IC) FOR LABOUR AND EMPLOYMENT

(SHRI SANTOSH KUMAR GANGWAR)

(a) & (b): The principal of “equal pay for equal work” was examined and laid down by the Hon‟ble Supreme Court in the civil appeal number 213 of 2013. The issue before the Hon‟ble Supreme Court was as under:

“whether temporarily engaged employees (daily-wage employees, ad- appointees, employees appointed on casual basis, contractual employees and the like), are entitled to minimum of the regular pay-scale, alongwith dearness allowance (as revised from time to time) on account of their performing the same duties, which are discharged by those engaged on regular basis, against sanctioned posts”

The Hon‟ble Supreme Court held that:

“There can be no doubt, that the principle of „equal pay for equal work‟ would be applicable to all the concerned temporary employees, so as to vest in them the right to claim wages, at par with the minimum of the pay-scale of regularly engaged Government employees, holding the same post”

The above judgement of the Hon‟ble Supreme Court dated 26th October, 2016 covers various sets of temporarily engaged employees, viz. daily-wage employees, adappointees, employees appointed on casual basis, contractual employees etc. It is mandatory for the employer/principal employer to comply with the provisions of labour laws and apply the ratio laid down by the Hon‟ble Supreme Court regarding “equal pay for equal work” while paying wages to its workers/labourers.

In so far as the contract labour is concerned, the Contract Labour (Regulation

& Abolition) Central Rules, 1971 provides for wage parity as stipulated in rule 25(2)(v)(a) which is reproduced below:

“in cases where the workmen employed by the contractor perform the same or similar kind of work as the workmen directly employed by the principal employer of the establishment, the wage rates, holidays, hours of work and other conditions of service of the workmen of the contractor shall be the same as applicable to the workmen directly employed by the principal employer of the establishment on the same or similar kind of work”

Authority: www.rajyasabga.nic.in

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