8th Pay Commission: The government has refused to consider any proposal to constitute the 8th Pay Commission. Dearness Allowance (DA) and Dearness Relief (DR) are paid to central government employees and pensioners to compensate for the decline in the real value of their salaries and pensions due to inflation.
The rate of Dearness Allowance (DA) for central government employees is expected to increase to 50% or even more by January 2024. The DA rate is currently decided on the basis of the recommendation of the 7th Pay Commission. The previous Pay Commission had also recommended that in order to neutralize the impact of inflation, future pay revisions should be made when DA/DR reaches 50% or more of the basic pay. In view of this, the question arises whether the government is planning to constitute the 8th Pay Commission?
No proposal for formation of 8th Pay Commission is currently under consideration: Finance Ministry
According to the Finance Ministry, at present no proposal for the formation of the Eighth Pay Commission is under consideration. “No such proposal is under consideration of the government,” Union Minister of State for Finance Pankaj Chaudhary said in a written reply to a question in the Rajya Sabha on July 25, 2023. Choudhary was replying to a member’s question in which he asked, “If the DA/DR rate is expected to be 50 per cent or more from January 2024, will the Central Government propose to set up the Eighth Central Pay Commission?” Have you done?”
DA-DR rates are revised every six months.
In the past also the government has refused to consider any proposal for constituting the 8th Pay Commission. Dearness Allowance (DA) and Dearness Relief (DR) are paid to central government employees and pensioners to compensate for the decline in the real value of their salaries and pensions due to inflation. These rates were increased to 42% of salary and pension in January 2023. The rates of DA/DR are revised from time to time every six months on the basis of All India Consumer Price Index for Industrial Workers (AICIP-IW).
Minister of State for Finance told in the House – Formation of Eighth Pay Commission is not being considered.
Asked whether the Government has not considered para 1.22 contained in the Report of the Seventh Central Pay Commission (CPC) recommending that the pay matrix of Central Government employees may be reviewed from time to time Choudhary said, “The government has not considered this issue as per the approval of revision of pay and allowances on the basis of the Seventh Central Pay Commission.” Further, on the question of 8th Pay Commission, the Minister said, “There is no proposal under consideration of the Government at present for the constitution of the 8th Central Pay Commission for Central Government employees.”
