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Pay fixation in UK is done on the basis of :

  • A.Index Number System
  • B.Increased Productivity Index
  • C.Performance rating
  • D.Priestley formula

Answer: D

Pay in the British civil service is fixed on the basis of the Priestley formula.

The Royal Commission on the Civil Service of 1953-55, chaired by Sir Raymond Priestley, laid down the principle of fair comparison: civil service pay should be set by comparison with the current pay of outside staff doing broadly comparable work. A Pay Research Unit was later set up to collect the outside data.

An index number system ties pay to prices, a productivity index ties it to output, and performance rating is about individual appraisal. None of these is the comparison rule that the Priestley Commission made the basis of British pay fixation.

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