Good news for civil servants
The 8th Pay Commission, likely to give body to fair alterations in pay structures and pensions of central government employees, could be released by the end of September this year. Union Railways Chief Shiv Gopal Mishra has already signaledthat preparatory structures for the 8th Pay Commission are in place and pending a conclusion soon.
Pay Structure: Expected Pay Matrix and Benefits
The new pay commission targets restructuring the pay structure and allowances for the 1 crore central government employees and pensioners. Mishra pointed out that there is a need to reconcile the increase in prices of essential commodities with the increase in dearness allowance for employees. As inflation rates have been higher than pre-COVID levels after COVID, many employees are waiting for these revisions.
Proposal and Key Recommendations
While writing a letter to the government, Mishra stressed the formation of the 8th Pay Commission at the earliest. He expressed concern that many essential commodities’ prices have risen by more than 80% between 2016 and 2023, while the DA given has risen by only around 46%. He proposed that, whereas the government only uses the DA to set salaries, the pay matrix should be adjusted from time to time according to current economic conditions.
Gujarat’s DA Hike
Similarly, the Chief Minister of Gujarat, Bhupendra Patel, approved an enhanced DA of 4% from January 1, 2024, for state government employees. This increase is in line with the central rate and continues to shift towards the needs of government workers.
Historical context and future expectations
These pay commissions in India are usually set after a decade with a view to revising the pay structure of government employees. The 8th Pay Commission came after the 7th Pay Commission, which made changes to the remunerations of government employees.
The new commission will bring new developments such as new salary scales, new allowances, and better pensions that equate the current economic status.
