7th Pay Commission: New salary revision structure from this year

After the 7th Pay Commission was implemented, the salary revision policy of the government is set to change. Talk is abuzz that the salary revision policy for central government employees is all set to change.

This would mean that the government would completely stop the pay commissions which have been in force since the independence of the country.

New salary revision formula

With no 8th Pay Commission, the question is how will the government revise the pay of central government employees? Justice A K Mathur who headed the 7th Pay Commission said that the government must review the salary of central government employees every year looking into the data available based on price index. The commission had recommended that the pay matrix may be reviewed periodically without waiting for the long period of ten years.

Aykroyd formula

The 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.

10 year wait to stop

As per the current system, the salaries of government employees was revised every 10 years. More often than not this formula has not been best suited for Central Government employees. The government is yet to comment on the matter, but in official circles there has been talk that a new revision structure would be in force from 2018.

After 7th Pay Commission what next

The government has seriously contemplated that the 7th Pay Commission will be the last. This means that there would not be an 8th Pay Commission. The government is likely to make this announcement soon.

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