With the 7th Pay Commission most likely to be the last, the Aykroyd formula is all set to kick in. This would ideally mean that there would annual salary revisions and Central Government employees will not have to wait for pay commissions in the future.
What is the Aykroyd formula which the government would rely on to determine and raise salaries of CG employees?
Dr. Aykroyd was appointed as the director of the government's nutritional research centre. In India. He worked on nutrition for nearly 30 years and was the director of the Nutrition Division, Food and Agriculture Organisation, United Nations. He was appointed in the Indian government in 1935.
The Aykroyd formula takes into account three basic needs of human beings while considering a pay hike. Under this, the government will review the salary of central government employees every year looking into the data available based on the price index. The 7th Pay commission had recommended that the pay matrix may be reviewed periodically without waiting for the long period of ten years.
Salaries of central government employees can be reviewed on the basis of the Aykroyd formula which takes into consideration the changes prices of the commodities that constitute a common man's basket. The Labour Bureau at Shimla reviews these changing prices of commodities periodically. This would mean that government employees will not have to wait for ten years for the formation of a pay commission to review their salaries and pension. All salary hikes and other revisions would take place every year taking into consideration the inflation that year.