In order to update the pay of central government employees and pensioners, the Union Cabinet approved the creation of the 8th Pay Commission earlier this year. More than a crore central government employees and retirees await the formal news, despite the government having authorised the commission’s creation.
When will the 8th Pay Commission submit the recommendations?
According to a report by Ambit Institutional Equities, the 8th Pay Commission is slated to present its recommendations by the end of 2025 and go into effect starting in January 2026. The report’s completion, submission to the government, and endorsement of its recommendations, however, will determine the rollout’s exact date.
When will the recommendations of the 8th Pay Commission be implemented?
According to the article, if approved, the 8th Pay Commission’s proposals are anticipated to be put into effect in FY27 and will probably result in a 30–34% rise in government wages and pensions.
The cost to the government and the significance of fitment factor in the eighth pay commission rise
According to the research, the 30–34% increase in wages and pensions is expected to cost the government an extra Rs1.8 lakh billion. Pay commissions are used to modify salaries, pensions, and allowances based on the fitment factor. This crucial multiplier determines government employee pay and pensions by accounting for inflation, employee needs, and the government’s financial stability.
Who is the 8th Pay Commission’s beneficiary?
Over a crore people would directly benefit from the recommendations of the 8th Pay Commission, including 68 lakh pensioners and roughly 44 lakh central government employees from various ministries and departments. According to the research, the 4.4 million central government and military workers account for 0.7% of India’s 60 crore workers and approximately 9% of the official sector.
8th Pay Commission: What does Pay Commission do?
The central government usually establishes a pay commission approximately every decade to assess and suggest modifications to the salary framework for government personnel. Since 1946, the government has set up seven pay commissions.
The Commission takes into account various factors such as inflation, economic conditions, income inequality, and other relevant metrics. It also evaluates bonuses, perks, allowances, and additional benefits available to government employees.
Currently, the recommendations of the 7th Pay Commission, which was established in 2014 under the Manmohan Singh-led UPA administration, are in effect. The 7th Pay Commission’s suggestions were put into action on January 1, 2016.