8th Pay Commission: Govt May Simplify Allowances, Focus on Basic Pay, Detail Inside
Lakhs of central employees and pensioners are eagerly waiting for the official announcement of the 8th Pay Commission. As always, the biggest question this time is whether there will be a bumper salary increase or if existing allowances will be cut. Given the experience of
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8th Pay Commission Update (4)
Lakhs of central employees and pensioners are eagerly waiting for the official announcement of the 8th Pay Commission. As always, the biggest question this time is whether there will be a bumper salary increase or if existing allowances will be cut.
Given the experience of the 7th Pay Commission, there is a fear that the government may work on the policy of ‘simplifying allowances’ this time too. This means that many small and irrelevant allowances can be abolished, while basic pay and dearness allowance will be increased. Let us know what changes can be made in the 8th Pay Commission.
What happened in the 7th Pay Commission?
According to the report of the Seventh Pay Commission, there were about 196 types of allowances at that time. The scope of many of these allowances was minimal, or they were similar to each other. The commission had recommended abolishing 52 of these allowances completely and merging 36. The government then discontinued many allowances and continued some with new rules.
What can happen in the 8th Pay Commission?
Experts believe that a similar process can be adopted in the 8th Pay Commission as well. They believe that this time the emphasis will be on ‘less allowances, more transparency’. Due to digital processes and administrative reforms, the utility of many old allowances has now ended. For example, travel allowance, typing allowance, special duty allowance, or some regional allowances are no longer as important. In such a situation, they will likely be abolished.
Will this reduce the salary
No, the reduction in allowances does not mean at all that the income of the employee will decrease. The government usually maintains a balance. When some allowances are removed, it is compensated for by increasing the Basic Salary and Dearness Allowance (DA). Another advantage of this is that it also has a positive effect on pension, because pension is calculated on basic pay and DA, not on allowances. However, no official notification has been issued by the government on these matters yet.
Vikram Singh
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