The 7th Pay Commission might likely be the last pay panel that will fix salaries and perks for central government employees. Now, in its place a new system called an Aykroyd formula could be used. This new formula will fix emoluments of all CG employees.
What is Aykroyd formula?
The 7th CPC document states, "We have attempted a pay structure which has as its basis the Aykroyd formula. It reflects the basic average cost of living in the country. The attempt is made to come up to a proper pay package so that the essentials of life can be availed comfortably."
Under the Aykroyd formula, salaries of central government employees would be linked to inflation and also their performances. This formula is based on recommendations of Wallace Ruddell Aykroyd, an acclaimed nutritionist who was the first director of the Department of Nutrition, Food and Agricultural Organisation or FAO.
Aykroyd based his recommendations on the requirements like food and clothing of Indians. He took into consideration price changes in commodities that are likely to affect the common man. The method will help to formulate a pay package that helps in availing of life’s essentials.
What is 7th Pay Commission Minimum Pay?
As per official 7th CPC documents, "After considering all relevant factors and based on the Aykroyd formula the minimum pay in government is recommended to be set at Rs.18000 per month."
How 7th Pay Commission New Pay Structure works?
The 7th CPC document, under New Pay Structure says, "The present system of pay bands and grade pay has been dispensed with and a new pay matrix has been designed. The status of the employee, hitherto determined by grade pay, would now be determined by the level in the pay matrix.
Adding to it, separate pay matrices have been made for civilians, defence personnel and for military nursing service. Now, all existing levels have been subsumed in the new structure and no new levels are introduced nor has any level been dispensed with."
The document adds, "In the “horizontal range” of the pay matrix level corresponds to a ‘functional role in the hierarchy’ and as the employee’s level rises he or she moves from level to level. The “vertical range” for each level denotes ‘pay progression’ within that level and an employee would move vertically within each level as per the annual financial progression of three percent. The starting point of the matrix is the minimum pay which has been arrived based on 15th ILC norms or the Aykroyd formula."
Hope this article will answer many of your questions about the Pay Matrix, New Pay Structure, and Minimum Pay of central government employees. If there are some more queries and confusions in your mind then you can comment below.
