Trace Your Case

STATE OF ANDHRA PRADESH V. G. SREENIVASA RAO

State of Andhra Pradesh v. G. Sreenivasa Rao 1989 SCR (1) 1000

ISSUE:

  • Whether payment of lesser salary to a senior than his junior in the same cadre is violative of the principle of equal pay for equal work enshrined in the Constitution under Articles 39(d), 14 and 16?

RULE:

  • Equal pay for equal work” does not require identical pay for all in a cadre.
  • Variations in pay, based on seniority, recruitment source, qualifications, or performance criteria, are justified if they follow valid rules and align with fair objectives.

FACTS:

  • Several employees who were promoted on a later date were being paid a higher salary than those who had been promoted earlier i.e. juniors were being paid more than seniors in the same cadre, in various offices.
  • The pay-fixation of the juniors were done in accordance with the Andhra Pradesh Fundamental Rules.
  • The Respondents, seniors who were being paid lower, approached the High Court or Tribunal and obtained orders in their favour, that the same was violative of the principle of ‘equal pay for equal work’ enshrined in the Constitution.
  • The High Court or Tribunal in each case ordered for the payment of equal salaries to the seniors as was being drawn by the juniors.
  • Aggrieved by the same, the Appellant employers approached the Supreme Court under its civil appellate jurisdiction.

HELD:

  • The Supreme Court held that the principle of “equal pay for equal work” enshrined in the Constitution under Articles 14, 16 and 39(d) is not violated.
  • The apex Court further stated that higher pay for juniors does not violate this principle if supported by valid rules, promotions, or incentives, provided criteria are reasonable and serve organizational goals.
  • Allowing the appeals, the Supreme Court overruled the decisions of the High Court and the Tribunals.
  • However, sympathizing with the plight of the Respondents as white-collared workmen, the Supreme Court directed that the additional salary, paid to them as part of the decisions of the High Court or Tribunal, shall not be recovered from them.