8th Pay Commission: The Centre has received a fresh proposal to immediately constitute the Eighth Pay Commission to revise the basic pay, allowances, pensions, and other benefits of central government employees and pensioners. Shiv Gopal Mishra, Secretary of the National Council (staff side, Joint Consultative Machinery for central government employees), emphasized the urgency of forming the 8th Pay Commission in a letter addressed to the Cabinet Secretary, Government of India.
Understanding the Pay Commission
A central pay commission is typically constituted every ten years to review and recommend changes to the pay structure, allowances, and benefits of central government employees. These recommendations consider factors such as inflation and cost of living. The Seventh Pay Commission, formed by former Prime Minister Manmohan Singh on February 28, 2014, submitted its report on November 19, 2015, with its recommendations taking effect on January 1, 2016.
Anticipation for the Eighth Pay Commission
Following the ten-year interval tradition, the Eighth Central Pay Commission is expected to be implemented from January 1, 2026. However, the Centre has yet to make any official announcement regarding its constitution. With the conclusion of the Lok Sabha Elections 2024 and the Modi government back in power, over one crore central government employees are eagerly awaiting updates on the Eighth Central Pay Commission.
Urgent Need Highlighted in the Proposal
Mishra’s letter highlights the disparity between post-COVID inflation and the Dearness Allowance (DA) provided to employees and pensioners. The letter notes that while the government had previously stated inflation was between 4% and 7%, with an average of around 5.5%, post-COVID inflation rates have exceeded pre-pandemic levels.
“If we compare the retail prices of essential commodities and goods required for daily life from 2016 to 2023, they have increased by over 80% as per the local market. However, we are provided only around 46% Dearness Allowance as of 1/7/2023. Hence, there is a gap between the actual price rise and DA provided to the employees and pensioners,” Mishra stated.
Awaiting Government Response
As central government employees and pensioners grapple with the rising cost of living, the call for the Eighth Pay Commission reflects the pressing need to adjust pay structures to current economic realities. The government’s response to this proposal will significantly impact the financial well-being of millions of central government employees and retirees.
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