The union cabinet gave its approval to the 8th Pay Commission, in January this year. Notably, The government typically forms a Pay Commission every 10 years in India. We can say that Pay Commissions decide the fate of central government employees and pensioners for at least 10 years.
Furthermore, India has a huge population of about 140 crores. Currently, 1 crore of these 140 crores, enjoy the privilege of being the workers or former workers of the central government. The then UPA government established the 7th Pay Commission in 2014 and in 2016, the NDA government implemented it.
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8th Pay Commission: Many Allowances May Be Scrapped
The work of Pay Commissions is not just limited to salary and pension increases. It also assesses the allowances and other facilities given to the central government employees. According to several media reports, the new Pay Commission may completely forgo many old and irrelevant allowances offered in the 7th Pay Commission. At the same time, the new Pay Commission might include new allowances, if needed.
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The 7th Pay Commission also scrapped several allowances for the central government employees and pensioners, added the media reports.
100% Pay Hike And Other Details
Staff side leader of the National Council-Joint Consultative Machinery (NC-JCM), M. Raghavaiah, told NDTV Profit that they will consider a ‘fitment factor of 2’ under the new Pay Commission. This will raise the pay of central government employees and pensioners by 100%.
Under the 7th Pay Commission, basic salary of central government employees is currently set at Rs 18,000 per month. Furthermore, pensioners' currently gets the minimum basic monthly pension of Rs 9,000.
At the fitment factor of 2, minimum basic salary of central government employees will rise to Rs 36,000 per month. The minimum basic pension of the pensioners will rise to Rs 18,000 per month.
Notably, the process of setting up the 8th Pay Commission is moving forward, with all parties involved are eagerly waiting for the announcement of the commission members and the Chairman. The central government might make this announcement, next month.