The Central government is mulling at forming the 8th Pay Commission, which might change the salary structure, fitment factor, and allowance of central employees at large. This is considered for the reduction of inflationary pressure and improvement of financial conditions of more than one crore central employees and pensioners.
Expected changes in Salary structure and Fitment Factor
Reports indicate that the government may present the 8th Pay Commission in the soon-to-be-presented Budget. National Council of Joint Consultative Machinery’s secretary Shiv Gopal Mishra said that the new one may recommend a fitment factor of at least 2.86, considering the present 2.57. If implemented it will raise the minimum basic salary from ₹18,000 to around ₹51,480, which reflects an increase of 186%.
Effects on Dearness Allowance and Other Benefits
In addition to pay hikes, the introduction of the 8th Pay Commission is expected to influence a number of allowances. Dearness Allowance is a periodic increase to adjust for inflation. HRA travel allowances, among other benefits, would likely be readjusted according to the new pay scale to provide more relief in the form of additional earnings to employees.
Timeline for Implementation
The 7th Pay Commission was established in February 2014. Recommendations began from January 1, 2016. On the typical cycle of ten years, it would become the 8th Pay Commission and may come into effect on January 1, 2026.
However, as some of the media sources claim that the government will likely be announcing the same in its budget to get an advanced start on this. For now, though, the government hasn’t given an official date of announcement for how long.
Conclusion
The formation of the 8th Pay Commission would indicate a positive step by the government in increasing the salaries and allowances of central employees. By improving salary structures, fitment factors, and allowances, this measure would bring financial stability to a significant section of the workforce and would be reflective of the government’s interest in employee welfare.
