No new Pay Commission after 7th Pay Commission? Employees' salary revision calculation to be based on THIS factor

The central government may come up with a new formula in deciding the pay factor of the employees.

New Delhi: The implementation of the recommendations of 7th Central Pay Commission (CPC) on pay and pensionary benefits has been benefiting the central government and the state government employees since a couple of years now.

In the past, the employees had to wait for 19 months for the implementation of the Commission’s recommendations at the time of 5th CPC, and for 32 months at the time of implementation of 6th CPC.  However, in the 2016, several changes were brought into effect --7th CPC recommendations were being implemented within 6 months from the due date.

However, if latest media reports are to be believed, there might no be any new new Pay Commission after 7th Pay Commission. The central government may come up with a new formula in deciding the pay factor of the employees. Media reports citing sources in the Finance Ministry said that the new salary hike will be based on performance linked increment. However the modalities regarding the assessment in salary calculation is not yet clear. Government is reportedly working in this direction.

Media reports have hinted that the goverment is working on a formula which will automatically calculate the salary component once the Dearness Allowance goes beyond 50 percent. The new calculation --probably could be termed as Automatic Pay Revision.

The 7th Pay Commission was formed in 2014 under the UPA government. Chaired by Justice Ashok Kumar Mathur, the pay Commission had Vivek Rae (then Secretary, Petroleum & Natural Gas) as full time member, Rathin Roy (then Director, NIPFP) as part time member and Meena Agarwal (then OSD, Department of Expenditure, Ministry of Finance) as the Secretary. The pay Commission was given a time period of 18 months to submit its report.