Despite the government’s recent statements that it’s not planning to form the 8th Pay Commission, trade unions are still pushing for it. They brought the matter up during their pre-budget meeting with Finance Minister Nirmala Sitharaman. The meeting was attended by several key officials, including Union Minister of State for Finance Pankaj Chaudhary, Finance Secretary, and secretaries of Economic Affairs, DIPAM, DPIIT, and the Chief Economic Adviser.
According to media reports, Finance Minister Sitharaman expressed support for forming the 8th Pay Commission during the meeting with trade unions. This generated hope among the central government employees that the Modi government will establish the commission as budget preparations are underway.
Notably, the Finance Ministry recently said in the Rajya Sabha that there are no plans to establish a new Central Pay Commission as yet. Furthermore, this development caused widespread disappointment among 1 crore central government employees and pensioners.
8th Pay Commission: 186% Salary Hike?
Shiv Gopal Mishra, secretary of the National Council of Joint Consultative Machinery (NC-JCM), has sparked excitement among central government employees by saying that the next Pay Commission may propose a fitment factor of “at least 2.86”. This will potentially lead to a significant 186% pay hike.
If the central government approves the proposed fitment factor, its employees’ minimum basic salary could jump from Rs 18,000 to Rs 51,480, and pensioners’ pensions may increase from Rs 9,000 to Rs 25,740.
Other Details!
According to several media reports, the central government may come up with a new mechanism to revise salaries and pensions based on employees’ performance and inflation rates. The government may forgo Pay Commission framework with this new shift.
A Pay Commission typically revises salaries every decade. Media reports suggest that the government may come up with a more dynamic system, ensuring that salaries aligns with current economic scenarios.
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