As the new year kicks off, the central government has given the green light for the 8th Pay Commission aimed at central employees. Now, everyone’s buzzing with anticipation for its formation. It’s rumored that the Modi government might reveal the chairman and two members for this commission next month, with recommendations likely to come out next year.
Since the approval of the Eighth Pay Commission, chatter about salary increases for employees and pension adjustments for retirees has really picked up. It’s important to remember that the Pay Commission doesn’t just focus on salary and pensions; it also looks at all the perks and allowances that government employees receive.
In the meantime, various media outlets are reporting that the Eighth Pay Commission might scrap outdated allowances or introduce new ones if necessary. This follows the trend set by the 7th Pay Commission, which also eliminated several allowances.
Speaking of the 7th Pay Commission, it was approved by Manmohan Singh and took effect on January 1, 2016. During its review, it assessed 196 allowances, ultimately approving just 95 while cutting 101. Some of those allowances were merged with others, while a few were completely done away with.
When it comes to salary increases, the 7th Pay Commission established a fitment factor of 2.57 for central government employees. As a result, the minimum salary rose from Rs 9,000 to Rs 18,000 per month, while the maximum salary reached Rs 2,25,000 per month.
The 8th Pay Commission may be established next month.
It’s important to highlight that the Eighth Pay Commission is anticipated to be formed next month, specifically in April. Additionally, the Central Government is likely to announce the Chairman and two other members of the Commission at that time. Once the Pay Commission is set up, it will take approximately a year to compile its report. Throughout this period, the Commission will engage with various key stakeholders, including representatives of central employees, to develop its recommendations.