Delhi, July 21: As Budget 2024 approaches, speculation is mounting that Finance Minister Nirmala Sitharaman may announce the formation of the 8th Pay Commission for central government employees and pensioners. The Central government has received renewed proposals to establish the commission, which aims to revise basic pay, allowances, pensions, and other benefits.

SB Yadav, Secretary General of the Confederation of Central Govt Employees and Workers, has formally requested the implementation of the 8th Pay Commission in a letter to the Cabinet Secretary. Yadav also demanded the restoration of the Old Pension Scheme (OPS) and the release of an 18-month dearness allowance and relief pending since the COVID-19 pandemic. 8th Pay Commission Update: Govt Gets Proposal to Establish 8th CPC; Know Implementation Date, Expected Salary Hike And Other Details.

This call echoes previous demands from the National Council (Staff Side) of the Joint Consultative Machinery (JCM), which has emphasized the need for the Eighth Pay Commission. Historically, Central Pay Commissions are formed every ten years to review and recommend adjustments to the salaries, allowances, and other benefits for central government employees based on factors such as inflation and other economic variables. 8th Pay Commission: 8th CPC Proposal Submitted to Govt, Significant Hike in DA, Salary and Pension on Cards; Key Details Here.

The 7th Pay Commission, implemented by former Prime Minister Manmohan Singh on February 28, 2014, and effective from January 1, 2016, set the precedent for these decadal reviews. By this trend, the 8th Central Pay Commission is expected to be implemented from January 1, 2026. However, no official announcement has been made by the central government.

Ritika Nayyar, Partner at Singhania & Co., told the Financial Express that given this Budget marks the first one after Prime Minister Modi’s government returns for a third consecutive term, and with pay commission timelines approaching, there may be a focus on middle-class fiscal interests. She suggested that the feedback from recent elections might persuade the government to begin preparations for the new pay commission. Nayyar noted that while implementing the new pay commission could stimulate the economy, it might also place a strain on government finances.

With Budget 2024 imminent, all eyes are on the central government for any official announcement regarding the 8th Pay Commission.

(The above story first appeared on LatestLY on Jul 21, 2024 03:48 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).