It's for states to adopt sixth pay panel: Chidambaram

NEW DELHI: Finance Minister P Chidambaram on Saturday rejected the demand of north-eastern states to share the burden of additional wage bill and said discretion of adopting the recommendations of the Sixth Pay Commission rests with individual states.

"The Sixth Pay Commission is meant for the central government employees. It is for a state to decide whether it wants to adopt or not," he said while responding to demands raised by representatives of north-eastern states that Centre should bear the additional burden of new pay structure for state government employees.

Participating at a special summit on banking and credit issues in the north eastern region, Arunachal Pradesh Finance Minister Kalikho Pul demanded that Centre should foot additional bill towards enhanced wages of the state government employees, as they buy goods from the same market as the Union government employees.

Similarly, Mizoram representative said, "Centre should give cent-per-cent of the liability of the special category states in connection with the Sixth Pay Commission recommendations in the form of separate grant-in-aid."

Responding to such demands, Chidambaram said, "It is true that both central government and state government employees buy in the same market. The private sector also buys in the same market. So do the self-employed people...though their incomes are not the same."

Referring to the Eleventh Finance Commission's recommendations, the minister said, "It is not all that bad. It said that a state must only pay for what it can afford to pay. It shouldn't pay what it cannot afford to pay."

After implementation of the Sixth Pay Commission award, employees in several states have stepped up pressure on their respective state governments for revision of pay.