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7th Pay Commission: Central Govt. Employees’ Salary will be Calculated & Increased with This New Formula?

After the implementation of this new formula, the salary of the employees will increase according to their performance linked increment.

Binita Kumari
Justice Mathur had indicated at the time of the recommendations of the 7th Pay Commission that they want to move the pay structure to the new formula (Aykroyd Formula).
Justice Mathur had indicated at the time of the recommendations of the 7th Pay Commission that they want to move the pay structure to the new formula (Aykroyd Formula).

According to the sources, there won’t be an 8th Pay Commission after the 7th Pay Commission ends. The Central Government is preparing to bring a new formula to increase the salary of the employees.

The Central Government is preparing a formula for the employees and pensioners in which the salary and pension will automatically increase if the Dearness Allowance is more than 50 percent. The intention of the government behind this new formula is that it should increase the salary of the employees from time to time. 

It may be named as Automatic Pay Revision system. After the implementation of this new formula, the salary of the employees will increase according to their performance linked increment. At present, the employees' unions are not happy with this decision of the central government. 

Former Finance Minister Arun Jaitley had also indicated this in July 2016. While giving a speech in Parliament, he had said that now instead of Pay Commission, one should think about the employees. Arun Jaitley wanted the salaries of middle-level employees as well as low-level employees to increase. 

At the same time, Justice Mathur had indicated at the time of the recommendations of the 7th Pay Commission that they want to move the pay structure to the new formula (Aykroyd Formula). While calculating the salary using this formula, the salary is fixed keeping in mind the cost of living. The need of the hour is that employees should be given a salary in comparison to inflation.

When this happens, lower-level employees can benefit a lot. The basic salary of a central employee with level matrix 1 to 5 level can be at least 21 thousand. However, the formula for this is yet to be worked out. The Narendra Modi government is not in favour of the next pay commission.

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