In a recent announcement, the government made it clear that there are no plans to create the 8th Pay Commission in the upcoming budget. This news has disappointed central government employees who were expecting the government to announce the formation of the commission, as pay commissions are usually set up every 10 years.

Why does this matter?

Pay commissions are important because they recommend salary and pension revisions for central government employees, making sure their pay matches with market standards and inflation. Without the 8th Pay Commission, employees and pensioners are left uncertain and may have to wait longer for any meaningful increase in their salaries.

What are employees expecting?

Employee unions have been actively pushing for the formation of the Eighth Pay Commission. The National Council of the Joint Consultative Machinery (NCJCM), a body that represents the grievances of employees, has sent multiple requests to the government in 2024 asking for immediate action. A key meeting of the NCJCM, which was earlier postponed, is now expected to happen in December to discuss these demands.

Employees are hoping for a good salary and pension increase. Unions have suggested a fitment factor of 2.86, which is higher than the 2.57 factor under the Seventh Pay Commission. The fitment factor is a multiplier that helps calculate the revised salary from the existing basic pay. If the proposed factor is accepted, it could lead to an increase in the minimum salary from ₹18,000 to ₹51,480, a rise of 186%. Similarly, the minimum pension could go up from ₹9,000 to ₹27,740.

Current Status

While these figures are being discussed, it’s important to note that no official decision has been made yet. The Ministry of Finance has not announced any immediate plans to address these expectations. This has left many employees and pensioners worried about their future pay hikes.

the recent announcement has dashed the hopes of central government employees who were expecting the formation of the Eighth Pay Commission.

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