7th Pay Commission: Yearly pay hikes to be based on price index
It would not be wrong to say that the year so far has been a disappointing one for the Central Government employees, where the 7th Pay Commission is concerned. The big question looking ahead is, will there be any more pay commissions in the future. If the government that comes to power next decides to do away with this concept, then the big question is how will the pay hikes of the CG employees will be decided.
This would mean that the pay hike would be reviewed more frequently rather than waiting for ten years. Known as the Aykroyd formula, the salaries from now onwards would be reviewed after taking into consideration the changes, prices of commodities that constitute a common man’s need. The review of the same would be done by the Labour Bureau at Shimla. The review would take place more frequently based on the prices etc as a result of which the price hikes would be more frequent.