8th Pay Commission on cards? Govt employees might get rated on performance for salary hike

8th Pay Commission: There has been significant discussion surrounding the potential implementation of the 8th Pay Commission following the 7th Pay Commission. Minister of State in the Ministry of Finance, Pankaj Chaudhary, recently informed the Rajya Sabha that the Centre currently has no plans to establish the 8th Pay Commission in the near future. Despite this announcement, talks regarding potential salary revisions are gaining momentum.

The 7th Pay Commission, which was introduced in 2016, has left employees eagerly anticipating the next revision. This commission saw an increase in the minimum salary from Rs 7,000 to Rs 18,000 per month, while the maximum salary for top officials rose to Rs 2.5 lakh per month.

In a written reply, Chaudhary clarified that the government is not considering any proposal to form the 8th Pay Commission.

“No such proposal is under consideration with the Government for constitution of Eighth Central Pay Commission for the Central Government employees, at present (sic),” the Finance Ministry said. Currently, the 7th Pay Commission's recommendations are in effect.

A Pay Commission is an official panel established by the government to assess and propose wage frameworks for employees of the Central government. Over the course of India's history since Independence, seven Pay Commissions have been convened, with each one typically covering a ten-year period. The recommendations put forth by these commissions have significant implications on the earnings and quality of life for countless employees and retired individuals. 

As per tradition, a new commission is established approximately every decade. If this pattern continues, the announcement of the next Pay Commission is anticipated in the near future, potentially leading to its implementation by 2026. However, indications from the government suggest that an alternative approach may be under consideration.

According to reports, salary revisions can be linked to performance or inflation instead of forming a new commission. 

If an 8th Pay Commission is established, here are the potential expectations for employees:

Increased Minimum Salary: Unions are calling for a raise in the minimum salary from Rs 18,000 to Rs 26,000-Rs 30,000 per month, citing escalating inflation and living expenses.

Fitment Factor Adjustment: The current fitment factor stands at 2.57, but there is speculation that it could be raised to 3.5 or 3.8. The fitment factor plays a crucial role in determining salary adjustments.

Revised Dearness Allowance (DA): Employees currently receive DA twice a year to combat inflation. The new commission might propose making DA more adaptable to changing inflation rates.

Pension Revisions: The revision of pensions, especially for retirees prior to the 7th Pay Commission, could see improvements. There has been a persistent demand for pension parity among retirees.

Updates to Housing and Travel Allowances: The commission may recommend updates to House Rent Allowance (HRA) and Travel Allowance (TA) to reflect present-day costs.