Pay panel mechanism to stay: FM

Finance Minister P Chidambaram today said the government did not propose to change the existing mechanism for setting up pay commissions for central government employees. The interim relief, he added, would be decided by the Pay Commission.

"I cannot see how there can be any automatic revision. The DA takes cares of the erosion of pay due to price increase," Chidambaram said during Question Hour in the Lok Sabha.

"The accepted mechanism for revising pay and allowances for government servants is the Pay Commission," he said.

Chidambaram said the commission had taken steps to invite comments from staff associations and government organisations. "The staff side has demanded an interim relief of Rs 1,000 per month," he said.

The government notified the 6th Central Pay Commission (CPC) on October five this year and asked it to submit its report within 18 months.

"The issue relating to payment of interim relief has been included as one of the terms of reference of the 6th CPC," he said, adding the commission has said that it will give its report as early as possible.

The commission had been asked to revise the pay structures in a way that merit was rewarded, he said.

This would be ensured through rationalisation of structures of organisations, systems and processes within the government, "with a view to leveraging economy, accountability, responsibility, transparency, assimilation of technology and discipline," Chidambaram said.