No 8th Pay Commission? Government Mulling Not to Form Pay Commission For Salary Hike Post 7th CPC

New Delhi, July 6: After the implementation of 7th Pay Commission (CPC), the government may not form any pay commission to revise salaries and allowances of central government employees and and pensioners. While the central government employees have begun contemplating whether the 8th Pay Commission bring them more relief, the government is mulling not to form any Pay Commission for increasing salaries and allowances. The 7th Pay Commission also recommended that the government should review the salary of central government employees every year rather than forming new pay commission after the long period of ten years.

A Finance Ministry official, while speaking to the Sen Timessaid the government may not form any new pay commission in future for increasing salaries of central government employees. This comes after the Cabinet gave its approval on the recommendations of the 7th Pay Commission on higher allowances after the delay of an year. “The government is going to take a policy decision in this regard,” the Finance Ministry official was quoted as saying. (ALSO READ: Minimum HRA Hiked From Rs 2,100 to Rs 5,400; Central Govt Employees to Get Higher Allowances in July Salary)

New Formula For Salary Hike:

Earlier, Justice AK Mathur, who led the 7th Pay Commission, said, in an interview, ‘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.’ The 7th Pay Commission recommended that the pay matrix may be reviewed periodically without waiting for the long period of ten years. The 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.

It simply means the government need not wait for ten years and form a pay commission to review salary and pension of the central government employees. Any changes required regarding pay and allowances would be made considering inflation after every year. According to the Finance Ministry official, the government is contemplating the suggestion of the 7th Pay Commission and may not appoint any pay commissions in future to suggest salary hike and other perks for all central government employees and pensioners.

‘7th Pay Commission is the worst ever pay commission’

In an earlier conversation with India.com, Shiv Gopal Mishra, who led the 7th CPC negotiations with the government on behalf of National Joint Council of Action (NJCA), the 7th Pay Commission is the worst ever pay panel recommendation for employees since independence. “Yes, 100 per cent. This is the worst ever pay commission in the past 70 years. All pay commission had kept minimum wage as the centre of their appraisal program. The manner in which this pay commission has recommended the minimum wage hike is depressing. The reduction of HRA to 8, 16 and 24 per cent has also agitated the employees,” the top union leader said.