No more Pay Commission in Future; Jaitley to announce soon?

New Delhi/Bhubaneswar: The Central government employees will no longer get their salary and allowances ‘revised’ as per the recommendations of a pay commission in future as the Centre has “almost” decided not to form any pay commission in future.

A top official in the Finance Ministry, on condition of anonymity, has confirmed that no new Pay Commission would be formed to increase salaries and allowances of the central government employees. “The government is determined to take strong decision in this regard,” The Sen Times quoted the official as saying.

As per reports, the government is considering an alternative for increasing salaries and allowances of the central government employees and pensioners in future instead of forming any 8th Pay Commission.

The government is likely to follow the instructions of the 7th Pay Commission Chairman Justice A K Mathur who was earlier of the view that the central government employees’ salary be revised every year taking into account the available data and price index.

Moreover, the 7th Pay Commission recommended reviewing the pay matrix periodically instead of waiting for long 10 years to revise the salary and allowances. The commission also suggested the usage of Aykroyd formula for the hike in pay of the central government employees.

It is worth mentioning that Aykroyd formula is attributed to Dr Aykroyd who worked on nutrition for nearly 30 years and was director of the Nutrition Division, Food and Agriculture Organisation, United Nations. In 1935, he was appointed director of the government’s nutritional research centre in India.

Aykroyd formula takes into account the three basic needs of human being while considering pay hike and salary structure.

Earlier this month, Minister of State for Finance P Radhakrishnan had made a statement in the Lok Sabha that no formation of Pay Commission in future is not on government radar for the time being and the Finance Minister Arun Jaitley would declare it later.

However, the official didn’t confirm what made the minister to say those lines and if Jaitley would actually make any such announcement in the near future.

Meanwhile, government employees are happy about the annual increase in pay but at the same time confused over the fact that the yearly increase would be a herculean task for the government and any irregularity and glitch in the whole process would ultimately hit their financial position.