7th Pay Commission: Confirmed, yearly pay hikes to be based on price index

New Delhi, Apr 03: It would not be wrong to say that the year so far has been a disappointing one for the Central Government employees, where the 7th Pay Commission is concerned.

The big question looking ahead is, will there be any more pay commissions in the future. If the government that comes to power next decides to do away with this concept, then the big question is how will the pay hikes of the CG employees will be decided.

A top source in the government informed OneIndia that irrespective of which party comes to power, there would be no pay commission determining pay hikes anymore. The officer said that the pay hikes would be reviewed on the date available based on the price index.

This would mean that the pay hike would be reviewed more frequently rather than waiting for ten years. Known as the Aykroyd formula, the salaries from now onwards would be reviewed after taking into consideration the changes, prices of commodities that constitute a common man's need.

The review of the same would be done by the Labour Bureau at Shimla. The review would take place more frequently based on the prices etc as a result of which the price hikes would be more frequent.

Further the revisions would take place on a yearly basis taking into consideration the inflation that year.

Further when it comes to promotions, this year would also witness a new rating system. As per this, the government would rely on public feedback to grant promotions. A grading system was prepared and 80 per cent of the weightage would be on public feedback for promotions.

The Aykroyd formula would incidentally be very beneficial for the CG employees as the hikes would be reviewed more frequently. It may be recalled that the CG employees were extremely upset with the recommendations of the 7th Pay Commission.