7th Pay Commission Could be Last CPC, Government Mulling Pay Hike When DA Crosses 50%

New Delhi, Dec 8:

The 7th Pay Commission or 7th CPC could be the last commission to formulate salaries and pension of central government employees as the Centre may not form any pay commission in future. The government is also mulling to revise salaries of its 4.8 million employees and 5.2 million pensioners when Dearness Allowance (DA) crosses 50 per cent. Notably, the 7th Pay Commission had recommended that the government should review the salary of central government employees every year rather than forming new pay commission after the long period of ten years.

Instead of forming new central pay commission after the 7th Pay Commission, the government is likely to revise salaries and allowances when DA crosses 50 per cent, said a Sen Times report quoting Finance Ministry sources. “The government’s objective is to keep central government employees salaries and allowances in balance with prices in the market, so pay and allowances will be hiked when DA crosses 50 per cent,” sources were quoted as saying. They said the 7th Pay Commission could be the last central pay commission and the department of expenditure will be responsible to regularly monitor salaries and allowances of central government employees. “The department of expenditure will submit a report in respect of pay hike when DA crosses 50 percent to the Finance Minister Arun Jaitley,” they said.

Earlier in an interview, Justice AK Mathur, who led the 7th Pay Commission, said, “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. According to the Finance Ministry officials, the government is contemplating the suggestion of the 7th Pay Commission and may not appoint any pay commissions in future to suggest salary hike and other perks for all central government employees and pensioners.