8th Pay Commission: New proposal for immediate increase in basic salary and DA of central employees

The authorities’s earnings are additionally rising with inflation. In such a scenario, the demand for the 8th Pay Commission for greater than 1 crore central authorities employees has intensified. Employees need their salaries, allowances and pensions to be reviewed.

Shiv Gopal Mishra, Secretary, National Council (Staff Side, Joint Consultative Machinery for Central Government Employees), has urged the federal government to represent the 8th Pay Commission (CPC) as quickly as doable. He has mentioned that each authorities earnings and inflation have elevated considerably because the Corona epidemic. Due to this, the hole between dearness allowance (DA) and rising costs of important commodities is rising. He pressured that the final salary revision passed off in 2016. Since then, inflation has considerably diminished the buying energy of employees and pensioners.

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What is a Pay Commission?

The Pay Commission is a physique appointed by the federal government. It opinions the salary construction, allowances and advantages of central authorities employees. Then recommends modifications in them. Usually this fee meets each 10 years. This fee assesses elements like inflation. On February 28, 2014, the then Prime Minister Manmohan Singh constituted the seventh Pay Commission. This fee submitted its report on November 19, 2015. Its suggestions have been applied from January 1, 2016.

When will the 8th Pay Commission be shaped?

Now all eyes are on the 8th Pay Commission. It is estimated that will probably be shaped by January 1, 2026. This will occur 10 years after the earlier fee. There has been no official announcement from the Center but. But, with the Modi authorities coming to energy for the third time after the 2024 Lok Sabha elections, greater than 1 crore central employees are very curious in regards to the Eighth Pay Commission.

What is the brand new proposal?

According to a report by our companion Economic Times, Shiv Gopal Mishra, in a letter to the Cabinet Secretary, has pressured the pressing want for a brand new pay fee to handle these financial realities. He mentioned that authorities income has doubled since 2015. Tax assortment has additionally elevated considerably. But, the salaries of central authorities employees haven’t elevated in line with inflation.

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Mishra mentioned, ‘According to the funds information, the income of the central authorities has doubled from the 12 months 2015 to 2023. We can see that the income assortment has elevated considerably. The precise income of the central authorities has elevated by greater than 100%. Therefore, the central authorities has extra capability to pay as in comparison with the 12 months 2016. GST assortment has additionally elevated to Rs 1.87 lakh crore in April 2023. Income tax assortment has been the very best in the 12 months 2022-23. Gross private revenue tax assortment (together with STT) (provisional) in the monetary 12 months 2022-23 is Rs 9,60,764 crore. This exhibits an increase of 24.23% in comparison with the earlier 12 months.’

The quantity of central authorities employees has decreased by about 10 lakh in the final decade. This has elevated the workload on present employees. The letter additionally recommends periodic evaluate of the pay matrix. It says that one shouldn’t wait for a full 10 years for this. The advice proposes the Akroyd components as an ordinary. This components takes under consideration the altering costs of important commodities. It offers a extra dynamic method to salary adjustment.

The challenges of NPS are additionally talked about

Apart from this, Mishra additionally 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 calls for to revive the previous pension scheme for employees recruited after 2004, the federal government has not but agreed.

The letter mentioned, ‘The authorities has neither accepted the above suggestions nor constituted the 8th Pay Commission. The DA of central authorities employees and pensioners has already reached 50% from 1.1.2024. Considering inflation and value rise, the DA part will cross 50%. It can also be value mentioning right here that greater than 20 lakh civilian central authorities employees are lined beneath the National Pension System.

They must contribute 10% of their basic pay and DA to NPS each month. This considerably reduces their in-hand salary. The authorities has not but agreed to our demand to abolish NPS and restore pension beneath CCS (Pension) Rules, 1972 (now 2021) for central authorities employees recruited on or after 1.1.2004.’

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