Shiv Gopal Mishra, Secretary, National Council (Staff Side, Joint Consultative Machinery for Central Government Employees), has urged the government to constitute the 8th Pay Commission (CPC) as soon as possible. He has said that both government earnings and inflation have increased significantly since the Corona epidemic. Due to this, the gap between dearness allowance (DA) and rising prices of essential commodities is increasing. He stressed that the last salary revision took place in 2016. Since then, inflation has significantly reduced the purchasing power of employees and pensioners.

What is a Pay Commission?

The Pay Commission is a body appointed by the government. It reviews the salary structure, allowances and benefits of central government employees. Then recommends changes in them. Usually this commission meets every 10 years. This commission assesses factors like inflation. On February 28, 2014, the then Prime Minister Manmohan Singh constituted the 7th Pay Commission. This commission submitted its report on November 19, 2015. Its recommendations were implemented from January 1, 2016.

When will the 8th Pay Commission be formed?

Now all eyes are on the 8th Pay Commission. It is estimated that it will be formed by January 1, 2026. This will happen 10 years after the previous commission. There has been no official announcement from the Center yet. But, with the Modi government coming to power for the third time after the 2024 Lok Sabha elections, more than 1 crore central employees are very curious about the Eighth Pay Commission.

What is the new proposal?

According to a report by our partner Economic Times, Shiv Gopal Mishra, in a letter to the Cabinet Secretary, has stressed the urgent need for a new pay commission to address these economic realities. He said that government revenue has doubled since 2015. Tax collection has also increased significantly. But, the salaries of central government employees have not increased according to inflation.

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Mishra said, ‘According to the budget data, the revenue of the central government has doubled from the year 2015 to 2023. We can see that the revenue collection has increased significantly. The actual revenue of the central government has increased by more than 100%. Therefore, the central government has more capacity to pay as compared to the year 2016. GST collection has also increased to Rs 1.87 lakh crore in April 2023. Income tax collection has been the highest in the year 2022-23. Gross personal income tax collection (including STT) (provisional) in the financial year 2022-23 is Rs 9,60,764 crore. This shows an increase of 24.23% compared to the previous year.’

The number of central government employees has decreased by about 10 lakh in the last decade. This has increased the workload on existing employees. The letter also recommends periodic review of the pay matrix. It says that one should not wait for a full 10 years for this. The recommendation proposes the Akroyd formula as a standard. This formula takes into account the changing prices of essential commodities. It provides a more dynamic approach to salary adjustment.

The challenges of NPS are also mentioned

Apart from this, Mishra also highlighted challenges like National Pension System (NPS). Under this, 10% of the basic salary and DA of the employees is deducted. This reduces their salary in hand. Despite the demands to restore the old pension scheme for employees recruited after 2004, the government has not yet agreed.

The letter said, ‘The government has neither accepted the above recommendations nor constituted the 8th Pay Commission. The DA of central government employees and pensioners has already reached 50% from 1.1.2024. Considering inflation and price rise, the DA component will cross 50%. It is also worth mentioning here that more than 20 lakh civilian central government employees are covered under the National Pension System.

They have to contribute 10% of their basic pay and DA to NPS every month. This significantly reduces their in-hand salary. The government has not yet agreed to our demand to abolish NPS and restore pension under CCS (Pension) Rules, 1972 (now 2021) for central government employees recruited on or after 1.1.2004.’

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Now Shiv Gopal Mishra, Secretary of the National Council (Staff Side, Joint Consultative Machinery for Central Government Employees), has reiterated this demand by writing a letter to the government. The Pay Commission is constituted every ten years. Therefore, it is expected that the Eighth Pay Commission will be constituted in the year 2026. In the Eighth Pay Commission, the basic salary of the employees is expected to increase by 25 to 35 percent. If this happens, the minimum basic salary will be around Rs 26 thousand per month. The fitment factor is also expected to be increased from 2.57 to 3.68.

The Pay Commission is a government-appointed body that reviews the pay structure, allowances and benefits of central government employees and recommends changes in them. It proposes necessary adjustments considering external factors such as inflation. The commission meets every 10 years. The 7th Pay Commission was constituted by the then Prime Minister Manmohan Singh on 28 February 2014. The commission submitted its report to the government on 19 November 2015 and its recommendations were implemented from 1 January 2016.

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When will the 8th Pay Commission be formed?

The Pay Commission has been formed in our country at an interval of 10 years. It is estimated that the Eighth Pay Commission will be formed by January 1, 2026. However, no official announcement has been made by the Center yet. With the Modi government coming to power for the third time, the curiosity about the Eighth Pay Commission has increased among more than 1 crore central employees.

Employees gave a new proposal.

Shiv Gopal Mishra, Secretary of Joint Consultative Machinery for Central Government Employees, in a letter written to the Cabinet Secretary, has demanded immediate formation of a new pay commission in view of the current economic conditions. He said that government revenue has doubled since 2015. Tax collection has also increased. But, the salary of central government employees has not increased according to inflation.

Since the Corona epidemic, both the government’s earnings and inflation have increased significantly. Inflation has significantly reduced the purchasing power of employees and pensioners. Therefore, now the Eighth Pay Commission should be constituted as soon as possible and the salaries and allowances of the employees should be revised. Mishra said that in the last decade, the number of central government employees has decreased by about 10 lakh. This has increased the workload on the existing employees. The letter also recommends periodic review of the pay matrix. One should not wait for a full 10 years for this.

The post New Proposal: 8th Pay Commission may be formed this year, Know everything first appeared on Rightsofemployees.com.