The 7th pay commission could be the last commission that makes prepares the salary structure and pensions of the central government employees. The central government may not create any pay commission in the future. The central government is also planning the revision of salaries of 4.8 million government employees and 5.3 million pension holders when the Dearness Allowance crosses the 50% mark. The seventh pay commission also recommends that government should review the salaries of central government employees instead of creating new pay commission every ten years.
Following the recommendations of 7th pay commission, the central government is expected to revise the salaries and allowances of employees when the DA crosses the 50 percent mark as reported by the sources of Finance Ministry. The government wants to keep the central government employees salaries and allowances in balance with the market prices. Therefore the government decides to increase the pay and allowances when the DA crosses 50 percent.
Department of Expenditure may review salaries after 7th Pay Commission
Sources said that the seventh pay commission could be the last pay commission and the salaries and allowances of central government employees will be monitored by the department of expenditure. Sources told that the department will also submit a report regarding the pay hike to the Finance Minister when the DA crosses 50 percent.
7th Pay commission suggests reviewing salaries every year
Justice A.K. Mathur who led the seventh pay commission said in an interview that government should revise the salaries of government employees every year keeping in view the available data and price index. The 7th pay commission suggests the pay matrix be reviewed periodically and not after a long period of ten years.
This means that the salaries and allowances should be revised every year keeping in view the inflation and price index. Moreover, salaries should be revised considering the prices of commodities which constitute a common man’s basket.
As per the Finance Ministry officials, the government is considering the suggestions of 7th pay commission and may not appoint any new pay commission for the revision of salaries of central government employees and pension holders. The suggestions of 7th pay commission include a 14 percent hike in salary to the Indian government officials.