Central government is now considering for 8th Pay Commission and gets proposal for hike in DA, basic pay and pension.
The central government has now requested to setup the 8th pay commission to review and update basic pay, salary ,allowances, pensions and other additional benefits for the central government employees and pensioners.
Secretary of the National Council (Staff Side, Joint Consultative Machinery for the Central Government Employees), Gopal Mishra has been written a letter to Cabinet Secretary Rajiv Gauba for the reason about the forming the 8th pay commission.
What is the Pay Commission?
Pay Commission is basically a organization set up by Indian government, which gives recommendations regarding changes in salary structure of employees. The pay commission review the salary framework, allowances and other benefits of central government employees and it constituted every 10 years.
The 7th pay commission, initiated by former Prime Minister Manmohan Singh on February 28, 2014, concluded its report on November 19, 2015. After that, its recommendations were implemented starting January 1, 2016.
The latest 8th pay commission is expected to come effect from January 1, 2026. Central government may declare about 8th pay commission during upcoming budget session.
Need for the 8th Pay Commission
The government stated that inflation ranged between 4% and 7%, with an average expected around 5.5 % said Secretary, Gopal Mishra to a news reporter. The retail price of essential commodities and goods which are required for daily life for human beings, during 2016 to 2023, they have increased by over 80% as per local market, but we were provided only around 46% Dearness Allowance (DA), as of July 1,2023. Hence there is gap between the actual price rise and total DA provided to the employees and pensioners.
According to budget statement, revenue of the central government has doubled from 2015 to 2023, indicating a significant rise in revenue collection said Mishra. He also said that central government’s actual revenue has increased more than 100%.
So, the central government has more paying capacity compared to the year 2016 and GST collection has also increased during Modi government tenure. In April 2023, Government collected Rs 1,87 trillion and there is significant decline in the number of central government employees over the past decade, resulting in around 1 million vacant positions. So government considering the 8th pay commission and should increase in basic pay and salary.
Pensions and NPS
DA has been rising to 50% from January 1, 2024 but there is no decision to reinstate the pension under CSS (Pension) Rules, 1972 and now it has became Rule 20231 for those recruited after January 1, 2004. More than 2 million civilian central government employees are contributing 10% of their basic pay and DA to the National Pension System (NPS), impacting their net take-home pay. It has been now essential to governments for increase and revise the pay scales, allowances and pensions.