7th Pay Commission: PM Modi-led NDA government is likely to switch to a new system to fix emoluments of government employees and scrap the pay panel recommendation system 7th Central Pay Commission (CPC) or 7th Pay Commission entirely.
According to India Today, the government may introduce the Aykroyd formula to fix the salaries of Central Government employees by doing away with the need for an 8th Pay Commission.
Under the Aykroyd formula-- government employees salaries would be linked to inflation as well as their performances since it factors in price fluctuations among commodities for the common man.
The report further says the formula is based on recommendations of Wallace Ruddell Aykroyd, an acclaimed nutritionist -- the first director of the Department of Nutrition, Food and Agricultural Organisation (FAO). It is based on the requirements -- such as food and clothing -- of the common man.
Meanwhile, justifying the requirement for a new pay structure, Justice A.K. Mathur, who headed the 7th CPC, had recommended that the government need to review salaries every year.
"We have attempted a pay structure which has as its basis the Aykroyd formula, which reflects the basic average cost of living in the country. The attempt has been to arrive at a proper pay package so that the essentials of life can be availed comfortably," the CPC document read. The commission had also recommended a uniform fitment factor.
Accepted on June 29, 2016, by the government--the 7th Pay Commission’s recommendations had fixed the minimum pay for a central government employee at Rs 18,000 per month from the Rs 7,000 earlier.
However, if the central government follows all the recommendations then central government employees salaries and pensions would become inflation-indexed, said the report.