8th Pay Commission: It is widely recognized that the salaries, allowances, dearness allowances, and pensions for central government employees are determined based on the recommendations of the Pay Commission.
7th Pay Commission is in effect
Currently, the 7th Pay Commission is operational, and a new Pay Commission is expected to be established every ten years. This new commission should be announced prior to its implementation, as the process of decision-making and execution requires time. With the deadline for the 7th Pay Commission approaching, discussions among government employees regarding the formation of the 8th Pay Commission are intensifying. Many are hopeful for an announcement in the upcoming budget. Should the 8th Pay Commission be established, it is anticipated that salaries, pensions, and other benefits will increase in line with its recommendations.
Announcement yet to make
However, the central government has yet to make any official statement regarding the 8th Pay Commission. In light of this, media reports suggest that a new pay system may be introduced in place of traditional pay commissions, with discussions around performance-based pay revisions also taking place. As we await the government’s budget announcement concerning salaries, trade unions are urging the Centre to promptly declare the formation of the 8th Pay Commission. Consequently, employees are keenly anticipating any updates on this matter. Now, let us explore the differences between the recommendations of the 6th and 7th Pay Commissions.
A calculation
The 7th Pay Commission was implemented in 2016, introducing a simplified pay matrix that replaced the previous pay bands and grade pay system. The minimum salary has been set at Rs. 18,000 per month, while the maximum salary for the Cabinet Secretary level is Rs. 2.50 lakh per month. A fitment factor of 2.57 times has been applied in these calculations. If the 8th Pay Commission is enacted, it is projected that the minimum salary for employees could rise to Rs. 34,560, with the minimum pension potentially reaching Rs. 17,200. We will have to wait and see how this unfolds.