In January, this year, the Central Government announced the 8th Pay Commission. However, the government has not yet finalized the Chairman and members of the new Pay Commission. The staff side of the National Council of Joint Consultative Machinery (NC-JCM) recently suggested the Terms of Reference of the 8th Pay Commission. The body suggested that the new Pay Commission should include a clause on merging dearness allowance (DA) with basic pay.

The Staff Side has reiterated that the new Pay Commission should decide on the percentage of dearness allowance and dearness relief to be incorporated into the basic pay and pension, respectively. Notably, this demand is not new, and 7th Pay Commission in 2016 recommended bringing back this rule, but it was not accepted by the government.

Notably, at the time of the 5th pay commission, which was in effect from 1996 to 2006, there was a rule that allowed the merger of DA with basic pay when DA exceeded 50%. This rule led to the merger of DA with basic pay in 2004. However, from the 6th pay commission, which took over in 2006, abolished this rule, discontinuing the practice of merging DA with basic pay.

8th Pay Commission: 100% Pay Hike And Other Details

M. Raghavaiah, staff side leader of the National Council-Joint Consultative Machinery (NC-JCM), told NDTV Profit that they will consider a ‘fitment factor of 2’ under the new Pay Commission. This will raise the pay of central government employees and pensioners by 100%.

Under the 7th Pay Commission, basic salary of central government employees is currently set at Rs 18,000 per month. Furthermore, pensioners’ currently gets the minimum basic monthly pension of Rs 9,000.

At the fitment factor of 2, minimum basic salary of central government employees will rise to Rs 36,000 per month. The minimum basic pension of the pensioners will rise to Rs 18,000 per month.