New Delhi, July 27: After implementing the recommendations of 7th Pay Commission (7th CPC), the government is now mulling not to form any Pay Commission for increasing salaries and allowances of central government employees and pensioners in future. Justice A K Mathur, chairman of the 7th Pay Commission, had 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. The government is considering this suggestion and will take a policy decision in this regard, said Finance Ministry sources.
While the central government employees have begun contemplating whether the 8th Pay Commission bring them more relief, the government seems in no mood to form any new commission. A Finance Ministry official, while speaking to the Sen Times, had said that the government may not form any new pay commission in future for increasing salaries of central government employees.

If not pay commission, then what will be the new formula for salary hike?

“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,” Justice AK Mathur, who led the 7th Pay Commission, told Indian Express. As per the recommendation of the 7th Pay Commission, 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.
If the government adopts this formula, it need not wait for ten years and form a pay commission to review salary and pension of the central government employees. This 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.
Earlier, Shiv Gopal Mishra, who led the 7th CPC negotiations with the government on behalf of National Joint Council of Action (NJCA), said that the 7th Pay Commission was the worst ever pay panel recommendation for employees since independence. “All pay commission had kept minimum wage as the centre of their appraisal program. The manner in which 7th Pay Commission has recommended the minimum wage hike is depressing,” Mishra had told India.com.