New Delhi: In a major decision, the Government on Thursday decided to set up the 8th Pay Commission to revise salaries of Central Government employees and allowances of pensioners.
The decision to set up the 8th Pay Commission was taken by Prime Minister Narendra Modi, I&B Minister Ashwini Vaishnaw said.
The term of the 7th Pay Commission will end in 2026.
“Prime Minister has approved 8th Central Pay Commission for Central Government Employees,” the Minister said. The Chairman and two members of the Commission will be appointed soon, he added.
There are over 49 lakh central government employees and nearly 65 lakh pensioners.
The Minister further said the setting up of the new Pay Commission in 2025 will ensure that its recommendations are received well before the completion of the term of the seventh pay panel.
Vaishnaw said consultations will be held with central and state governments and other stakeholders.
Since 1947, the Government constituted seven pay commissions. The pay commission has a key role in deciding salary structures, benefits and allowances for government employees. Most of the state-owned organisations follow the commission’s recommendations.
The 7th Pay Commission was constituted in 2014 and its recommendations were implemented on January 1, 2016.
The last commission had submitted its report in 2015. It was headed by Justice Ashok Kumar Mathur and had members including Vivek Rae, Dr Rathin Roy and Meena Agarwal. Studying the pay structure, proposing new grades and keeping in mind the fiscal condition of the government so as to leave room for social welfare measures, is a massive exercise the commission will have to undertake.
The government will come out with a new order appointing the commission chairperson and members apart from laying the terms and reference of the pay commission. As this is going to be the eighth pay commission since Independence, the panel may be asked by the government to consider the emerging situation to keep the massive workforce’s salaries in tune with the times. Last time, under the 7th pay commission, the minimum salary was set at Rs 18,000 from the earlier Rs 7,000 under the 6th pay commission.
After the government had accepted the recommendation of the 7th Commission, the armed forces objected to its certain proposed pay structure.
After the recommendations are accepted by the Union government, there is pressure on the state governments to implement the recommendations for the state employees too. As the proposed commission will undertake a massive exercise all eyes will be on how it will adhere to the government’s thinking of keeping the workforce shorter to keep the salary and pension bills under check.
As most of the central government employees and pensioners are based in Delhi, they have an impact during the polls. Sources said the government had got the decision cleared by the election commission before the announcement. As polls in Delhi are keenly contested, the BJP is trying to break the 25-year jinx of being out of power.