Equal Pay for Equal Work - Pay Scale Parity and Pay Commission's Recommendations Upheld by Supreme Court

In a landmark decision , the Supreme Court of India upheld the Delhi High Court's ruling that granted pay scale parity to employees of the Ordnance Factory Board (OFB) headquarters with their counterparts in the Central Secretariat Service (CSS). The bench, comprising Justices A.S. Bopanna and Pamidighantam Sri Narasimha, dismissed an appeal by the Union of India, emphasizing the importance of historical parity and adherence to the recommendations of the VIth Central Pay Commission.

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In their judgement, the apex court noted, "The High Court has not undertaken the exercise regarding which restraint has been expressed by this Court. However, on the admitted facts and the earlier situation which existed, a consideration has been made keeping in view the very recommendation of the Pay Commission in reckoning the appropriate application of the pay scale."

This decision marks a significant recognition of the principle of 'equal pay for equal work.' The court observed that there was a clear historical precedent of parity in pay scales between the employees of OFB and those in similar positions within the CSS. The Supreme Court further clarified, "In view of the above, the appeal being devoid of merit, stands dismissed with no order as to costs."

The case, which hinged on the interpretation of the VIth Central Pay Commission's recommendations, highlights the nuanced approach the judiciary must take in matters of pay scale disparity. The bench underscored the judicial restraint required in such matters but acknowledged the necessity to intervene in cases of palpable discrimination or arbitrariness.

Representing the appellants, Mr. R. Bala Subramanian argued the limited scope of judicial review in matters of pay scale fixation. Conversely, Ms. Kiran Suri, representing the respondents, emphasized the historical parity and the unjust treatment meted out to OFB employees.

The judgement also referenced several past decisions, including "Union of India vs. Indian Navy Civilian Design Officers Association and Another (2023) SCC Online SC 173" and "Union of India vs. Dineshan K.K. (2008) 1 SCC 586," to reinforce its stance.

This ruling is expected to have far-reaching implications for similar cases of pay disparity in various government sectors, reinforcing the role of historical parity and Pay Commission guidelines in determining pay scales.

Date of Decision: 09 November  2023

Union of India & Ors. VS D.G.O.F. Employees Association and Anr.