8th Pay Commission: Central government employees and pensioners are eagerly waiting for the final notification of the 8th Pay Commission. The biggest question along with the fitment factor is how many old allowances will be abolished in the new salary structure and how much the total salary of the employees will increase.
7th Pay Commission Experience
During the last 7th Pay Commission, 196 allowances were reviewed. Out of these, it was recommended to abolish 52 allowances and include 36 in other allowances. After this, the government removed many allowances and gave new name and structure to some.
Experts believe that a similar process can be adopted in the 8th Pay Commission. This time the principle of ‘less allowance, more transparency’ will be followed.
Which allowances may be affected
Officials anticipate that travel allowances, special duty allowances, small regional allowances and some departmental allowances such as old typing/clerk allowances may be abolished. The salary structure can be simplified and made transparent by removing irrelevant allowances due to digitalisation and new administrative systems.
Will there be an impact on the salary of employees?
The reduction in allowances does not mean that the total earnings of the employees will be less. Usually the government balances the removal of allowances by increasing the basic salary and Dearness Allowance (DA). This will also benefit pensioners, because pension is calculated on basic salary and DA, not on separate allowances.
8th pay commission status
The central government has not yet issued the official notification of the 8th Pay Commission. The Terms of Reference (ToR) of the commission and the appointment of the chairman and members are yet to be finalised. The ToR will determine how the commission makes recommendations on salary structure, allowances and other benefits. In January 2025, the Modi government had announced the commission and started the process of inviting suggestions.
