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No plan under consideration to set up 8th pay commission, says Centre

Source: Cointelegraph

Aug 10, 2022

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The government has no plan to set up the eighth pay commission for central government employees, Union Minister of State for Finance Pankaj Chaudhary told Parliament.

"No such proposal is under consideration with the government for constitution of the eighth Pay Commission for central government employees," Chaudhary said in a written reply to a question in Lok Sabha. He was addressing a question in the House on whether the government proposed to ensure a timely constitution of the eighth Central Pay Commission for central government employees so that it could be implemented on January 1, 2026.

"In order to compensate central government employees for the erosion in the real value of their salaries on account of inflation, the dearness allowances (DA) are paid to them and the rate of DA is revised periodically every six months on the basis of the rate of inflation as per All India Consumer Price lndex for Industrial Workers released by Labour Bureau under the Ministry of Labour & Employment, the minister said.


Central government employees are eagerly waiting for another hike in the DA rate in the second half of the financial year. As inflation rates are being retained, the Cabinet is likely to increase the DA for all the central government employees and pensioners and a decision in this regard may be announced soon. DA is calculated on the basis of retail inflation which has been over 7% for quite some time now.

According to reports, the DA is likely to be hiked between 3% and 4%.

In July 2021, the Centre revised the DA from 17% to 28% as per the recommendations of the 7th Pay Commission. Again, the Union cabinet approved a hike of 3% in DA for the employees in October 2021 effective from July 1, 2021.

The central government decided to increase the DA by another 3% in January 2022. At present, all the government employees are receiving DA at 34%. More than 50 lakh government employees and 65 lakh pensioners are getting the benefits of the revision of the DA.

The 7th Central pay commission was set up by the government on February 28, 2014. The Centre forms a pay commission to revise the salary structure of the government employees after 10 years.


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