Central Government considering not to form Pay Commission in future
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 issuing the 7th Pay Commission notification.
Pay
Commissions makes much impact on the fiscal deficit, since pay commission
awards come once in 10 years, the two to three years subsequent to each award
tend to be fiscally stressful for the central government. States also suffered
major blows to their finances for implementation of pay commission report, he added.
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 there would be an officer who would submit a report of inflation
to the Finance Minister Arun Jaitley every three years.
He added
some changes regarding pay and allowance would be made considering inflation.
