The central government has revealed plans to establish the 8th Pay Commission. However, employee organizations are still awaiting the ‘terms of reference’ related to this initiative. C. Srikumar, a member of the National Council of Staff Side (JCM) and General Secretary of the All India Defense Employees Federation (AIDEF), emphasizes that the government needs to be generous this time around.
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Currently, the dearness allowance (DA) stands at 53 percent. The recommendations from the Eighth Pay Commission are set to take effect on January 1, 2026, which means pay scales will be adjusted starting next year.
By that time, it’s possible that the DA could rise to 60% or even higher. Historically, the government has adjusted pay scales based on the ‘Dr. Acroyd’ formula. According to Srikumar, it’s time for the government to look beyond this formula. Given the ever-changing economic landscape, if the 8th Pay Commission proposes recommendations that move past the ‘Dr. Acroyd’ formula, the minimum pay scale in the country could potentially increase from Rs. 18,000 to Rs. 40,000.
The 7th Pay Commission utilized Dr. Acroyd’s formula to boost the salaries of central government employees and pensioners. This formula suggested that the minimum salary for government jobs should be set at Rs 18,000 per month. Justice AK Mathur, who led the commission, mentioned that the government ought to reassess the pay scales for central employees annually based on available value index data, rather than waiting a decade for a review.
Currently, as noted by Srikumar, the basic minimum pay is Rs 18,000 per month. With the 8th Pay Commission’s recommendations, this could rise to between Rs 40,000 and Rs 42,000, which the government should seriously consider. As more sectors shift to private ownership, it’s crucial to ensure that the pay structure accounts for any significant drops in real earnings due to inflation.
Employees deserve fair compensation that reflects their qualifications. The pay structure needs to keep up with market trends while remaining attractive enough to draw in talent for government roles. Government jobs are more than just contracts; they represent a commitment. Employees expect fair treatment from the Central Government, and states should set a positive example in public service to inspire enthusiasm among workers.