Good news for central govt employees! DA hike expected as 8th Pay Commission proposed; Check details

Good news for the central government employees and pensioners. Their dearness allowance (DA) likely to be hiked as a proposal has been given to the government for the formation of the 8th Pay Commission.

Shiv Gopal Mishra, Secretary of the National Council (staff side, Joint Consultative Machinery for central government employees) gave the proposal to establish the 8th Pay Commission as the 2024 Budget is getting closer.

Mishra wrote a letter to the Cabinet Secretary, urging the government to prioritize forming the 8th Pay Commission, which will review the basic pay, allowances, pension, and other benefits for central government employees and pensioners.

Notably, the central government establishes a pay commission once in every ten years to review and suggest changes to the pay structure, allowances, and benefits of central government employees, considering factors like inflation. Former Prime Minister Manmohan Singh had set up the 7th Pay Commission on February 28, 2014. However, its recommendations came into force from January 1, 2016.

If the timeline is taken into consideration, the 8th Pay Commission likely to be established sometime this year and is expected to start from January 1, 2026.

In his proposal letter for formation of the establishment of the 8th Pay Commission, Mishra noted that after the COVID pandemic, the inflation has increased to an average of 5.5% which used to be between 4% and 7%.

“The post-COVID inflation is higher than pre covid levels. If we compare the retail prices of essential commodities and goods which are required for daily life from 2016 to 2023 they have increased by over 80% as per the local market, but we are provided only around 46% Dearness Allowance as of 1/7/2023. Hence there is a gap between the actual price rise and DA provided to the employees and pensioners,” he said as per the letter.

Mishra pointed out that while the DA for government employees and pensioners reached 50% on January 1, 2024, there has been no decision to restore the Pension under the CCS (Pension) Rules for those recruited after January 1, 2004, reported businesstoday.in.

The Secretary of the National Council also said that the take-home pay of over 20 lakh civilian central government employees get reduced as they contribute 10% of their basic pay and DA to the National Pension System (NPS) every month.

“Considering all the above aspects and today’s requirement of life and also to attract qualified and talented candidates to the Government service time has now come to immediately constitute the 8th Central Pay Commission and to revise the pay scales/allowances/pension and other benefits of the central government employees through mutual discussions and settlements. Therefore, the staff side demands that the government of India may immediately constitute the 8th Central Pay Commission,” read Mishra’s letter.

Once established, over 1 crore central government employees will get huge benefits from the 8th Central Pay Commission.

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