7th Pay Commission: The last pay panel, top sources confirm, here is what to expect now
New Delhi, July 30: It has been more or less confirmed that the 7th Pay Commission would be the last pay panel.
Top sources informed OneIndia that the government has almost decided to completely do away with the pay panel recommendation system. The official also said that in the past few months, the discussions have all be about moving towards a new system, which would be used to fix the salaries of Central Government employees.
This would mean that the CG employees would have to be prepared to be analysed through a new formula. The hikes would be both inflation and performance based. The government has made it clear that it proposes to weed out a large chunk of non-performers and in the recent months, one may recall, that the same had been set into motion.
The government will be introducing the Aykroyd formula. This means that there would be no 8th Pay Commission. Justice A K Mathur 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. 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.
It is now confirmed that the 7th Pay Commission would be the last pay commission. The new methods of evaluating CG employees would come into force and this would be periodic. This would mean that the hikes would be more periodic in nature. However there would also be a rating system in place, by way of which the promotions and how secure the jobs are would be decided.