West Bengal and Maharashtra, despite having fewer public sector employees, are likely to face a higher burden of salaries and pensions.
Last week, the Centre accepted the recommendations of the Seventh Central Pay Commission, which had suggested 23.5 per cent hike in salary and allowances, and 24 per cent hike in pension of central government employees.
The focus has now shifted to states - whether they would implement a similar pay hike for their employees or not.
However, financial as well as political dynamics of each state are different, writes, Ishan Bakshi.
While the exact quantum of state-wise hike and its impact on state finances is not known, a YES Bank study on the potential impact of Pay Commission hikes on state finances suggests that Kerala and Punjab are the most vulnerable to such revisions.
On the other hand, Gujarat and Jharkhand are likely to have the least difficulty in bearing this extra financial burden.
West Bengal and Maharashtra, despite having fewer public sector employees, are likely to face a higher burden of salaries and pensions.
According to the study, West Bengal, Tamil Nadu, Punjab, Uttar Pradesh and Odisha have asked the Union government "to go slow on the implementation of the Seventh Central Pay Commission recommendations, so that they get more time to equip themselves with resources to meet higher salary bills."
Measuring the impact of pay hike in 11 states:
Part 1: Gujarat faces Rs 6,000 crore burden
Part 2: Uttar Pradesh: Employees to benefit from a political windfall
Part 3: Madhya Pradesh: Many employees still get fourth pay panel salary
Part 4: Punjab: Financially unfit to implement huge pay hike
Part 5: Pay hike: Maharashtra readies for Rs 21,000-cr mega blow
Part 6: Andhra Pradesh & Telangana: Govt staff already have high salaries
Part 7: Tamil Nadu: In debt, state faces pressure to implement pay hike
Part 8: Karnataka: Pay hikes due in 2017, unions get restless
Part 9: West Bengal: Debt ridden state faces uphill task
Part 10: Haryana: Small state rich in financial resources
Part 11: Delhi: Well placed to absorb the impact of the pay hike
KEY RECOMMENDATIONS OF THE 7TH PAY COMMISSION
- 23.5% overall increase in pay and allowances. 24% hike in pensions. allowances up by 63%
- Rs 18,000 per month minimum pay, compared with Rs 7,000 per month so far
- Maximum pay of Rs 2.5 lakh per month for Cabinet Secretary, compared with Rs 90,000 per month so far
- Hikes to come with the August paychecks, with effect from January 1, 2016
- Gratuity ceiling raised from Rs 10 lakh to Rs 20 lakh. It will increase by 25% whenever DA rises by 50%
