8th Pay Commission: There is very important news for central employees. The central government has finally approved the formation of the 8th Pay Commission. This decision is expected to bring a big change in the lives of lakhs of employees and pensioners. Let us know about this decision in detail.
Big decision of the government
Information and Broadcasting Minister Ashwini Vaishnav informed that Prime Minister Narendra Modi has approved the proposal to constitute the 8th Pay Commission. This decision will directly benefit 50 lakh central employees (including armed forces personnel) and 65 lakh pensioners. Of course, this will increase the financial burden on the government, but the demand for various products and services in the country will also increase, which will give impetus to the economy.
Positive impact on the economy
Given the way the Indian economy is currently struggling with a lack of demand, this decision can prove to be very positive. There are four lakh central employees in Delhi who will benefit from this decision. This decision is also being considered important given the Delhi elections.
On Time Decision
Ashwini Vaishnav said, ‘Since independence, the Pay Commission has been constituted at a certain interval to suggest an increase in the pay scale of central employees. The recommendations of the 7th Pay Commission were last implemented in 2016. Although the 8th Pay Commission was to be constituted next year in 2026, the Prime Minister has taken this decision now so that it gets enough time to give its recommendations and the government to decide on it.’
Prime Minister Narendra Modi, while giving his reaction to this decision, said, “We are proud of the efforts of all the government employees who are working to build a developed India. The Cabinet’s decision on the 8th Pay Commission will improve the quality of life and boost consumption.”
Previous Commissions and Their Impacts
When there is an increase in salaries and allowances etc. after the recommendations of the Pay Commission, it has a positive impact on the entire economy. The 7th Pay Commission was constituted in February 2014 by the then Manmohan Singh government and its recommendations were implemented by the Modi government from January 1, 2016. In the year 2016-17, the government expenditure increased by Rs 1 lakh crore to implement the recommendations of the 7th Pay Commission.
Increase in Salary and Pension
However, not all the recommendations of the 7th Pay Commission were fully implemented by the Centre. However, due to the decision of the Central Government to increase the salary and pension, the minimum basic salary in the Central Government increased from Rs 7,000 to Rs 18,000 per month and the minimum pension increased from Rs 3,500 to Rs 9,000 per month. While the maximum salary was fixed at Rs 2.50 lakh and the maximum pension at Rs 1.25 lakh.
Increase in demand and increase in government revenue too
Government sources said that it is usually observed that after the implementation of the Pay Commission report, there has been a spurt in demand for new homes, cars, and household goods for three years. Its positive impact has also been seen in tourism. By the way, its effect is also seen in inflation as demand in the market increases. Also, there is an increase in government revenue as most government employees pay more tax.
Dearness Allowance and Dearness Relief
The Pay Commission also suggests a formula for revision of dearness allowance and dearness relief to deal with inflation for central government employees and pensioners.