Several States like West Bengal, Odisha and Uttar Pradesh, among others, have written to the Prime Minister, Cabinet Secretary and Finance Ministry to delay implementation of the 7th Pay Commission recommendations, as most financially stressed States will be under pressure to make a similar pay increase. The States have sought more time to assess implications on their finances of implementing the 23.5 per cent hike in pay and pension for their employees in sync with the 7th Pay Panel recommendations for Central staff.
“There are many States that are already financially stressed. There are a few States which are not in a position to increase pay and pension of their employees even during the next financial year. They have sought more time to assess the impact of the recommendations,” a senior Finance Ministry official said. While the Centre’s pay bill will go up by `1,02,100 crore in 2016-17 if the government accepts the report, the States will have to scramble for resources to make similar hikes.