8th Pay Commission: Central government employees are in tears. Many have even started planning to buy a house, car etc. You must be wondering what happened suddenly. In fact, Prime Minister Narendra Modi on Thursday approved the formation of the Eighth Pay Commission to revise the salaries of central employees and allowances of pensioners. Information and Broadcasting Minister Ashwini Vaishnav said, “The Prime Minister has approved the Eighth Central Pay Commission for central government employees.” The Chairman and two members of the Commission will be appointed soon. The Minister said that starting the process of constituting the new Pay Commission in 2025 will ensure that its recommendations are received and implemented before the completion of the tenure of the Seventh Pay Commission. Can be reviewed.
Sources said that this step will benefit about 50 lakh central government employees including those working in the defense sector. Besides, there will be an increase in the pension of about 65 lakh pensioners. This will benefit approximately four lakh employees in Delhi alone. These include defense and Delhi government employees. Sources said that generally, the salary of Delhi government employees increases with the Central Pay Commission.
What is the fitment formula?
Seventh Pay Commission Fitment Factor was 2.57. Due to this, the basic salary was increased from Rs 7 thousand to Rs 17,990. If this formula is considered as the basis, then the minimum salary under the maximum range of fitment factor in the 8th Pay Commission will be Rs 26,000. Employees unions and other organizations are demanding to keep it between 2.86 to 3 in the Eighth Pay Commission. If this demand is accepted, there will be a 180% increase in salary. According to reports, the minimum base pay may be increased to Rs 34,650 in the Eighth Pay Commission, which is Rs 17,990 in the Seventh Pay Commission. At the same time, pension can be increased from Rs 9,000 to Rs 17,280. However, this is only a possibility.
Fitment factor is the coefficient through which salary and pension are revised. The 7th Pay Commission had suggested a fitment factor of 2.57, due to which the minimum pay increased from ₹ 7,000 to ₹ 17,990. Now it remains to be seen how much fitment factor will be kept in the 8th Pay Commission. The Chairman of the Pay Commission will present his recommendations by 2026. This will be known only in that. The Seventh Pay Commission was constituted in 2014 and its recommendations came into effect from January 1, 2016. Its term is ending in 2026.
After how many years does the change occur?
Usually, every 10 years the Central Government constitutes a Pay Commission to revise the salaries of its employees. Seven pay commissions have been constituted since 1947. The Pay Commission holds extensive consultations with the Central and State Governments and other concerned parties before making recommendations to the Government. Pay Commission plays an important role in deciding the salary structure, benefits and allowances for government employees. Most of the units owned by state governments implement the recommendations of the Commission. Under the Seventh Pay Commission, there was an increase of Rs 1 lakh crore in expenditure in the financial year 2016-17.
Salary journey started from Rs 55
So far seven pay commissions have been constituted. His tenure and main recommendations are as follows: …
- First Pay Commission (May 1946 to May 1947) Chairman: Srinivas Varadacharya. After India’s independence, attention was paid to rationalizing the pay structure. The concept of ‘Livelihood Award’ was introduced. Minimum salary: Rs 55 per month. Maximum salary: Rs 2,000 per month. Beneficiaries: About 15 lakh employees.
- Second Pay Commission (August 1957 to August 1959) Chairman: Jagannath Das. Attention was paid to balancing the economy and cost of living. Minimum salary recommended is Rs 80 per month. Socialist model was adopted. Beneficiaries: About 25 lakh employees.
- Third Pay Commission (April 1970 to March 1973) Chairman: Raghubir Dayal. Minimum salary recommended is Rs 185 per month. Emphasis was placed on pay parity between the public and private sectors. Inequalities in pay structure were removed. Beneficiaries: Approximately 30 lakh employees.
- Fourth Pay Commission (September, 1983 to December, 1986) Chairman: P.N. Singhal. Minimum salary recommended is Rs 750 per month. Attention was paid to reducing disparities in pay across ranks. Performance linked pay structure introduced. Beneficiaries: More than 35 lakh employees.
- Fifth Pay Commission (April, 1994 to January, 1997) Chairman: Justice S. Ratnavel Pandian. Minimum salary recommended is Rs 2,550 per month. Suggested to reduce the number of pay scales. Focused on modernizing government offices. Beneficiaries: About 40 lakh employees.
- Sixth Pay Commission (October, 2006 to March, 2008) Chairman: Justice B.N. Sri Krishna. ‘Pay Band’ and ‘Grade Pay’ were introduced. Minimum salary: Rs 7,000 per month. Maximum salary: Rs 80,000 per month. Emphasis on performance related incentives. Beneficiaries: About 60 lakh employees.
- Seventh Pay Commission (February, 2014 to November, 2016) Chairman: Justice AK Mathur. Minimum wage increased to Rs 18,000 per month. Maximum salary Rs 2,50,000 per month. A new pay matrix was recommended in place of the grade pay system. Attention was given to allowances and work-life balance. Beneficiaries: More than one crore (including pensioners).