8th Pay Commission: Good news for central government employees. An important announcement regarding the Eighth Pay Commission will be made in May. The central government announced the Eighth Pay Commission during the budget. Since then, speculations have been going on.
Happiness for central government employees
Many believe that the salaries of government employees will increase by almost three times, and pensions will also increase by the same amount. An important piece of information regarding the Eighth Pay Commission has been released.
If the Eighth Pay Commission is formed, there will be changes not only in salary hikes but also in dearness allowance, house rent allowance, etc. Before the formation of the Pay Commission, a committee will be formed. The salary hike will be based on their report.
Salary hike
The terms of reference will be announced in the next 2-3 weeks. The names of the chairman and members of the committee will also be announced. Once this committee is formed, the way in which the Eighth Pay Commission will be implemented will become clearer.
Central government employees will get new salary in 2026?
As the report will be released in mid-2026, the salary and pension revision will come into effect from 2026. Appointments for the Eighth Pay Commission have progressed significantly. Details will be released soon.Let us tell you that the 7th CPC was constituted on 28 February 2014. This CPC was headed by Justice Ashok Kumar Mathur and he was given 18 months to submit his report.
The 7th CPC, implemented on 1 January 2016, increased the salaries (pay and allowances) of central government employees by 23.55% and pensions by the same amount. The additional payout was estimated to be Rs 1.02 lakh crore or 0.65% of GDP in FY17, making it difficult for the government to reduce the fiscal deficit from 3.9% in FY16 to 3.5% of GDP in FY17.
While the pay hikes resulting from the pay panel could boost consumption on a large scale, its recommendations also put a heavy burden on state governments, public sector undertakings and central universities, which take recommendations from the commissions and carry out corresponding pay revisions.