8th Pay Commission Update: Central employees are constantly demanding the formation of the 8th Pay Commission. The employees argue that the formation of the 8th Pay Commission is necessary to prevent financial problems arising from not increasing salaries in line with inflation. This will not cause any problems. The Modi government will implement the 8th Pay Commission after two years, in 2024.
This will also increase the employee’s fitment factor. The increase in fitment will lead to a salary increase for central employees, which will serve as a significant boost. However, after the budget, the State Finance Minister has denied the formation of the 8th Pay Commission. He had said that the government does not have any pending ideas regarding the 8th Pay Commission. This statement also came as a significant shock to central employees. The demand continues to increase at a rapid pace. We now await the government’s ultimate decision on this matter.
In how many years does a new pay commission become available?
Every ten years, the central government introduces a new pay commission, leading to an increase in employee salaries. Should the government establish the 8th Pay Commission in 2024, it will reintroduce it in 2026, thereby benefiting millions of families. Previously, the government constituted the 7th Pay Commission in 2014 and implemented it on 1 January 2016.
This will see a bumper increase in salary. Earlier, in 2004, the 6th Pay Commission came into existence. Two years later, on 1 January 2006, it came into effect. Central and state employees received substantial benefits from this implementation. This time, the government has not yet made any plans for the 8th Pay Commission, which is perceived as a surprise to the government class. However, there has been no official announcement yet.
How much will the dearness allowance increase?
The central government can increase the dearness allowance, i.e., DA, by 4 percent. After this, the DA will rise to 54 percent, resulting in a record-breaking increase in the basic salary. At present, central employees benefit from 50 percent DA. If we increase the DA now, its rates will become applicable from July 1, 2024.
The dearness allowance experienced a 4 percent increase in March 2024. Its rates were considered effective from January 1, 2024. About 1 crore employees and pensioners benefit from the DA increase.