8th Pay Commission: Almost after a 10 month wait, the government has approved approved the Terms of Reference (ToR) for the 8th Pay Commission. After the approval, now, employees can dream about a significant salary hike and pensioners can expect for a growth in pension. Salary hike and pension hike is depending on a few factors. Which factors will help to improve the salary of the employees? Let’s find out. Through this article, we will explore 5 points which can influence the increase of salary or pension.
These 5 factors will increase the salary of employees.
1. The 8th Pay Commission will consider several important aspects. First, it will analyze the current economic situation of the country and the state of the government treasury.
2. The government’s focus will be on whether there is enough money for development expenditure and social welfare.
3. The second major issue is the unfunded expenditure of non-contributory pension schemes. These schemes do not require direct contributions from either the employee or the employer, but are funded entirely by the government. The Commission will assess this burden to ensure future financial stability.
4. State governments will also be affected. Most states adopt the central government’s recommendations with some modifications. Therefore, the Commission will also take their financial situation into account. This will help implement a uniform policy across the country.
5. In addition, the current salary structures, allowances, and working conditions of employees of central public sector undertakings (PSUs) and the private sector will be compared. This will ensure that government employees’ salaries remain competitive.
What is ToR?
The ToR is the cornerstone of the Commission’s functioning. It sets the direction for changes to the basic pay structure, various allowances, and pension amounts. The government believes this framework will ensure fair and balanced recommendations.
