The central
government is mulling not to form any
Pay
Commission for increasing salaries and allowances of central
government
employees and and pensioners in future.
The report
of inflation would be submitted to the Finance Minister Arun Jaitley once every
three years.
No new
commission may be formed in future for increasing salaries of central
government employees, a senior Finance Ministry official told The Sen Times on
condition of anonymity.
“The
government is going to take a policy decision in this regard,” official told
our reporters after cabinet nod of the 7th Pay Commission allowances.
Presenting
an idea about an alternative arrangement, he said that the 7th Pay Commission
Chairman Justice A K Mathur had earlier told The Financial Express 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. 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 to follow this proposal of the Pay Commission and to
discontinue the practice of appointing pay commissions in future to suggest
salary structure and other perks for all central government employees and
pensioners, the official gave his views.
The official
said the report of inflation would be submitted to the Finance Minister Arun
Jaitley once every three years.
He added the
changes regarding pay and allowance would be made considering inflation