No 8th Pay Commission in future: Is it feasible?

If rumours are be believed, the recently implemented 7th Pay Commission was the last for the lakhs of Central government employees as the government is mulling an alternative- increase in the pay of the employees annually instead of increasing it once in a 10-year period.

It is worth mentioning that a top official in the Finance Ministry, on condition of anonymity, recently confirmed that no new or 8th Pay Commission would be formed and the government is determined to take strong decision in this regard.

Now, the news has become a coffee table discussion for many, with people pondering over its advantages and disadvantages, if it is materialised.

“If the salary of the employees is increased every year, it will definitely be a benefit but the issue of allowances will be a matter of concern,” said a retired Indian Railways employee.

It will not be a cake walk for the government to come up with such a decision. The recent Seventh Pay Commission is already in a type of controversy as most of the employee unions have expressed their dissatisfaction over its recommendations. It will be a mammoth task for the government to review the pay matrix every year, he added.

Increasing salary annually is not feasible. The commission and the period of evaluation to come up with changes in pay will be a massive task and will throw the whole process out of order, said another government employee.

“It will be a good initiative. Annual increase will help to maintain our financial position,” said a Central government employee.

Earlier, the 7th Pay Commission had recommended reviewing the pay matrix periodically instead of waiting for long 10 years for revising the salary and allowances of the employees. The commission had also suggested Aykroyd formula as an alternative.

(Aykroyd formula is attributed to Dr Aykroyd who worked on nutrition for about 30 years and was director of the Nutrition Division, Food and Agriculture Organisation, United Nations)

The three basic needs of human being is taken into account by the Aykroyd formula while considering pay hike and salary structure.