7th Pay Commission: No hike in pay matrix, Aykroyd formula set to come into force

| January 15, 2018

Following the implementation of the 7th Pay Commission, the government has now ruled out the hike in pay matrix for top and mid level employees. The decision was taken by the Finance Ministry after going into various aspects following which it was said that these level of employees did not need it.

Salaries already reviewed

The government feels that it has already reviewed the salaries and perks of Central Government employees above the pay matrix 5. Hence it was decided that they do not need higher pay matrix levels.

Struggle continues

For the Central Government employees the struggle however continues. Several times they have put off strikes and agitations on the basis of assurances made by the government. This time too around the wait has been never ending.

New salary revision structure

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. 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.

Last 7th Pay Commission 

With the government deciding to put in place the new pay revision structure, the 7th Pay Commission would be the last. Finance Minister Arun Jaitley is expected to make this announcement soon. What is in store for CG employees this year is something that time will tell. 

Source:- OneIndia News

Category: News, Seventh Pay Commission

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