8th pay commission updates: Millions of central government employees and pensioners are eagerly waiting for the formation of the 8th Pay Commission. The new Pay Commission is usually formed every 10 years to revise the pay scale of the employees according to the current inflation and the cost of living. The 7th Pay Commission came into force in 2016, and in this sense the 8th Pay Commission is expected around 2026. However, this time the situation looks a bit different.
Government’s current trend and new formula:
For some time, such discussions have been hot that the government may probably implement a new formula or automatic pay revision system for increment rather than the formation of the traditional pay commission. Some time ago, Minister of State for Finance Pankaj Chaudhary had said in response to a question in Parliament that at present there is no proposal under consideration with the government to form the 8th Pay Commission. He also indicated that the government could consider a system in which the salaries of the employees would be automatically revised on the basis of their performance and inflation (such as based on the acroid formula).
What is the connection of DA being 50%?
The current dearness allowance (DA) is 46%, and it is expected that it will soon increase 4% to 50%. According to the recommendations of the Seventh Pay Commission, when the DA reaches 50%, it is merged into the basic pay. This situation also emphasizes the formation of the 8th Pay Commission or the discussions of the new pay fixation mechanism.
What is the current situation?
Currently, the salary of central employees is fixed on the basis of fitment factor (2.57 times) and pay matrix recommended by the 7th Pay Commission. The minimum wage is Rs 18,000. If the 8th Pay Commission is formed, it may recommend an increase in fitment factor and minimum wage. However, if the government moves towards the new formula, the method of increment can completely change.
Impact of upcoming Lok Sabha elections:
The Lok Sabha elections to be held in 2024 can also play an important role in this matter. The government would not like to offend the employees, so some positive steps are expected to be taken regarding the increment, whether in the form of the formation of the 8th Pay Commission or under a new system.
At present, the picture is not completely clear regarding the formation of the 8th Pay Commission. Employees will have to wait for the official announcement from the government.
