Government preparing alternative to Pay Commissions, New Pay Structure system to be announced soon

| January 15, 2018

New Delhi: In a move that may not go down well with the central government employees, the government has decided to do away with Pay Commission in the future.

According to The Sen Times report, no new Pay Commission would be formed in future for increasing salaries of central government employees. “The government is determined to take strong decision in this regard,” a top finance ministry official was quoted by the Sen Times report.

Media reports suggest that instead of forming an 8th Pay Commission, the government is looking at an alternative to revise future salaries and allowances of central staff and pensioners.








The report, quoting the official, further said that the government will follow in the footsteps of the 7th Pay Commission Chairman Justice A K Mathur for formation of the next Pay Commission.

In an earlier interview to the The Financial Express, Justice Mathur had said that the government should review the salary of central government employees every year looking into the data available to it and based on the price index.




Even the 7th Pay Commission recommended that instead of waiting for 10 years, the pay matrix can be reviewed and revised periodically on the basis of the Aykroyd formula, which takes into consideration the changes in prices of the commodities that constitute a common man’s basket, the finance ministry official said, adding that government will soon discontinue the practice of appointing Pay Commissions in future to suggest salary structure and other perks for all central government employees and pensioners.




However, the finance ministry official’s remarks come in contrast to what was conveyed by Minister of State for Finance P Radhakrishnan earlier this month. The minister had made a statement in Lok Sabha that no formation of Pay Commission in future is not on government radar for the time being and this will be declared later by Finance Minister Arun Jaitley.

Source:- TimesNow

Category: News, Seventh Pay Commission

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