New Delhi, June 29: As the 2024 Budget approaches, the government has received a proposal to establish the 8th Pay Commission to review the basic pay, allowances, pensions, and other benefits for central government employees and pensioners. Shiv Gopal Mishra, Secretary of the National Council (staff side, Joint Consultative Machinery for central government employees), urged the government to prioritize forming the commission in a letter to the Cabinet Secretary.

A central pay commission is established every ten years to assess and suggest changes to the pay structure and benefits, considering factors like inflation. The 7th Pay Commission, established by former Prime Minister Manmohan Singh on February 28, 2014, saw its recommendations take effect from January 1, 2016. 8th Pay Commission: 8th CPC Proposal Submitted to Govt, Significant Hike in DA, Salary and Pension on Cards; Key Details Here.

The 8th Central Pay Commission is expected to start on January 1, 2026, but the government has not yet formally announced its establishment. Over 1 crore central government employees are awaiting updates on the commission following the 2024 Lok Sabha Elections and Prime Minister Narendra Modi's re-election for a third term. 8th Pay Commission Proposal Submitted to Govt for Hike in DA, Basic Pay and Pension; Know How Much Salary Will Increase If New Pay Commission is Implemented.

Mishra highlighted the impact of post-COVID inflation, noting that while inflation used to be between 4% and 7%, it has now increased to an average of 5.5%. He pointed out that the retail prices of essential commodities have risen by over 80% from 2016 to 2023, whereas employees only receive around 46% Dearness Allowance as of July 1, 2023.

Mishra suggested periodic reviews of the pay matrix based on the Aykroyd formula, which considers price changes of common commodities, rather than waiting ten years for another Pay Commission. He also mentioned that while the DA for government employees and pensioners reached 50% on January 1, 2024, there has been no decision to restore the Pension under the CCS(Pension) Rules for those recruited after January 1, 2004.

Incase the 8th Pay Commission is set up for recommendations, it is most likely that the fitment factor will be set at 3.68 times. Now, considering  the minimum basic salary of government employees at Rs 18,000, they can expect a hike of Rs 8,000 to Rs 26,000 in their basic pay, if fitment factor of 3.68 times is placed upon.

Highlighting that over 20 lakh civilian central government employees contribute 10% of their basic pay and DA to the National Pension System (NPS) each month, Mishra emphasised the need to establish the 8th Central Pay Commission immediately to attract qualified candidates to government service.

"Considering all the above aspects and today’s requirement of life and also to attract qualified and talented candidates to the Government service time has now come to immediately constitute the 8th Central Pay Commission and to revise the pay scales/allowances/pension and other benefits of the central government employees through mutual discussions and settlements," Mishra stated in the letter. He urged the government to start discussions and make necessary revisions.

(The above story first appeared on LatestLY on Jun 29, 2024 03:57 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).