Government reveals plans on the establishment of the Eighth Pay Commission
The rate of Dearness Allowance (DA) for central government employees is expected to go up by 50% or even more by January 2024. The rate of DA is currently decided on the basis of the recommendation of the 7th Pay Commission. The last Pay Commission also recommended that in order to neutralize the effect of inflation, future pay revision should be done when DA/DR reaches 50% or more of the basic pay. In view of this, the question becomes imperative whether the government is planning to set up the 8th Pay Commission?
At present, no proposal is under consideration for the constitution of the Eighth Pay Commission: Finance Ministry
According to the Finance Ministry, there is currently no proposal under consideration for the constitution of the Eighth Pay Commission. Union Minister of State for Finance Pankaj Chaudhary said in a written reply to a question in the Rajya Sabha on July 25, 2023, “No such proposal is under consideration of the government.” He was replying to a member’s question, “If the rate of DA/DR is expected to be 50 per cent or more from January 2024, has the Central Government proposed to set up the Eighth Central Pay Commission?”
DA-DR rates are revised every six months
In the past too, the government has refused to consider any proposal for the formation of the 8th Pay Commission. Dearness Allowance (DA) and Dearness Relief (DR) are paid to central government employees and pensioners to compensate for the decline in the real value of their salaries and pensions due to inflation. These rates were raised to 42% of salary and pension in January 2023. The rates of DA/DR are revised from time to time every six months on the basis of All India Consumer Price Index (AICIP-IW) for Industrial Workers.
The Minister of State for Finance told in the House – the formation of the Eighth Pay Commission is not being considered
When asked whether the government has not considered para 1.22 contained in the report of the Seventh Central Pay Commission (CPC) which recommended that the pay matrix of central government employees may be reviewed from time to time “The government has not considered the issue as per the approval of revision of pay and allowances on the basis of 7th Central Pay Commission,” the minister said. Further, on the question of 8th Pay Commission, he said, “There is currently no proposal under consideration of the government for constitution of 8th Central Pay Commission for Central Government employees.”
