Do all state governments follow the central pay commission recommendations?

Yes The Pay Commission is an administrative system/mechanism that the government of India set up in 1956 to determine the salaries of government employees.

For example

the implementation of the Commission's recommendations ravaged the finances of the central and state governments.

The central government declared salary and allowances hikes for its approximately 3.3 million employees, and insisted that the state governments too revise the pay of their employees as per the Commission's recommendations.

The result: Before the Fifth Pay Commission recommendations came into effect, the central government's wage bill (including pension dues of Rs 50.94 billion) stood at Rs 218.85 billion in 1996-1997.

It shot up by nearly 99 per cent to Rs 435.68 billion in 1999-2000.