The Centre has received a proposal to immediately set up the Eighth Pay Commission. This commission aims to revise the basic pay, allowances, pension, and other benefits for central government employees and pensioners.
Shiv Gopal Mishra, Secretary of the National Council (staff side, Joint Consultative Machinery for central government employees), wrote to the Cabinet Secretary explaining why the 8th Pay Commission should be a priority. Let’s understand the details of his letter.
WHAT IS A PAY COMMISSION?
A central pay commission is typically formed every ten years. It reviews the current pay structure, allowances, and benefits of central government employees and recommends necessary changes considering factors like inflation.
The Seventh Pay Commission was formed by former Prime Minister Manmohan Singh on February 28, 2014, and its recommendations took effect on January 1, 2016.
WHEN WILL THE 8TH PAY COMMISSION BE FORMED AND IMPLEMENTED?
Normally, there is a ten-year gap between pay commissions. Therefore, the 8th Central Pay Commission is expected to be implemented from January 1, 2026.
However, the Centre has not officially announced the formation of the 8th Pay Commission. With the Lok Sabha Elections 2024 now concluded and Modi 3.0 in power, over 1 crore central government employees are eagerly awaiting updates.
WHY IS THERE AN URGENT NEED FOR THE 8TH PAY COMMISSION?
Mishra highlighted the urgent need for the 8th Pay Commission due to rising inflation. He noted that post-COVID inflation is higher than pre-COVID levels.
From 2016 to 2023, the retail prices of essential commodities have increased by over 80%, but the Dearness Allowance provided is only around 46%.
He also pointed out that the central government’s revenue has doubled from 2015 to 2023.
The GST collection in April 2023 was Rs 1.87 lakh crores, and income tax collections were the highest in 2022-23. With higher revenue, the central government has a greater capacity to pay its employees.
DEMAND TO REVIEW THE PAY MATRIX PERIODICALLY
Mishra also suggested that the pay matrix should be reviewed periodically instead of waiting ten years.
He recommended using the Aykroyd formula, which considers changes in the prices of common commodities. This review should be conducted regularly by the Labour Bureau at Shimla.
CONCLUSION
The proposal for the immediate formation of the 8th Pay Commission highlights the need to address inflation and ensure fair compensation for central government employees.
With the government’s increased revenue, there is a strong case for revising the pay structure and allowances without further delay. Central government employees and pensioners eagerly await the Centre’s decision.