Published On: Tue, Dec 22nd, 2015

No new pay commission in future

New Delhi: No new Pay Commission is likely to be formed for increasing salaries and allowances of central government employees and and pensioners in future.

Seventh Pay Commission Chairman Justice A K Mathur

Seventh Pay Commission Chairman Justice A K Mathur

The government could discontinue the practice of appointing pay commissions every 10 years to suggest salary revisions for its employees, he said.

Pay Commissions makes much impact on the fiscal deficit, since pay commission awards come once in 10 years, the two to three years subsequent to each award tend to be fiscally stressful for the central government. States also suffered major blows to their finances for implementation of pay commission reports.

Presenting an idea about an alternative arrangement, the Seventh Pay Commission Chairman Justice A K Mathur told The Financial Express in an interview, “The government should review the salary of government employees every year looking into the data available to it and based on the price index.”

The Seventh Pay Commission headed by Mathur also recommended that the pay matrix may be reviewed periodically without waiting for the long period of ten years. It can be reviewed and revised on the basis of the Aykroyd formula which takes into consideration the changes prices of the commodities that constitute a common man’s basket, which the Labour Bureau at Shimla reviews periodically.

The Pay Commission also suggested that this should be made the basis for revision of that pay matrix periodically without waiting for another Pay Commission.

So, it will not be necessary to form a new pay Commission after every 10 years for central government employees and pensioners and whether any change is required regarding pay and allowances would be made considering inflation.

Accordingly, the central government is likely to accept this proposal of the Pay Commission and discontinue the practice of appointing pay commissions in future to suggest salary structure and other perks for all central government employees and pensioners.


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