The Union Government gave a major update on the constitution of the 8th Pay Commission for Central Government employees. The Centre announced that it is not considering a proposal to constitute the 8th Central Pay Commission for its employees.
Union Minister of State for Finance Pankaj Chaudhary informed the Parliament while answering a question on whether the Centre proposes to ensure a timely constitution of the 8th Central Pay Commission so it could be implemented on January 1, 2026.
Regarding the “reasons for not implementing the recommendations of 7th CPC so far”, the minister said that “this issue has not been considered by the Union Cabinet while according the approval for the revision of pay and allowances based on 7th CPC.”
He also shed light on other measures being taken by the Centre to raise salaries, in view of rising inflation, saying, “In order to compensate for erosion in the real value of their salaries on account of inflation, dearness allowances (DA) is paid to them.”
The rate of DA is revised periodically every 6 months on the basis of the rate of inflation gauged under All lndia Consumer Price lndex for Industrial Workers. The minister reiterated that the Chairman of 7th CPC in his forwarding of the Report in Para 1.22 had recommended that the matrix may be reviewed periodically without waiting for the long period of ten years.
Salary, allowances and pension of employees
He also replied to “whether it is also a fact that 7 CPC had recommended that Government should review the salary, allowances and pension of employees and pensioners every year rather than forming a new Pay Commission after a long period of ten years.”
“It can be reviewed and revised on the basis of the Aykroyd formula which takes into consideration the changes prices of the commodities that constitute a common man’s basket, which the Labour Bureau at Shimla reviews periodically. It is suggested that this should be made the basis for revision of that matrix periodically without waiting for another Pay Commission,” Chaudhary answered.
As many as seven pay commissions have been constituted since 1947. After every 10 years, the Centre forms a pay commission to revise the salary structure of the government employees. The government has reportedly set up the 7th Central Pay Commission on 28 February, 2014.
