Top News

8th Pay Commission Update: In November, the central government constituted the 8th Pay Commission and approved its Terms of Reference (TOR), which will serve as the main guideline for preparing the recommendations. Now, many employees and pensioners are eagerly awaiting the submission of the Pay Commission's report and the government's approval. Amidst all this, there were several questions that were confusing many employees and pensioners, such as pension revision, merger of DA-DR with basic pay, etc. The central government has cleared up this confusion by answering these questions in Parliament.

DA-DR will not be merged with Basic Pay
The central government has clarified that it is not considering any proposal to merge the Dearness Allowance (DA) or Dearness Relief (DR) with the basic salary of central government employees and pensioners. In a written reply in the Lok Sabha on Monday, Minister of State for Finance Pankaj Chaudhary said, "There is currently no proposal under consideration by the government to merge the existing Dearness Allowance with the basic salary." The statement further added that the government periodically revises the DA/DR every six months to mitigate the impact of inflation.

Government addresses pension concerns.
A major concern that was troubling central government employees and approximately 70 lakh pensioners has finally been addressed by the Finance Ministry. After weeks of speculation stemming from a missing reference in the notified Terms of Reference (ToR), the Ministry has officially clarified that the 8th Pay Commission will include pension revision in its mandate.

The government answered an unstarred question in the Rajya Sabha. Minister of State for Finance Pankaj Chaudhary clearly stated: “The Eighth CPC will make its recommendations on various issues, including pay, allowances, pensions, etc., of central government employees.”

When will the 8th Pay Commission be implemented?
Swapnil Agarwal, Director of VSRK Capital, says that based on past trends, once the government constitutes a pay commission or initiates the process, it usually takes 1-2 years for it to be implemented. Agarwal said, “Looking at the current timeline, the government has already collected the necessary data and initial inputs, which indicates that the process is underway.  Considering these indicators, the recommendations of the 8th Pay Commission are expected to be implemented before 2027.”

In India, Pay Commissions are constituted approximately every decade, and their recommendations typically take about 2-3 years to be implemented. For example, the 7th CPC was constituted in 2014 and implemented in 2016, within 29 months. Similarly, the 6th CPC took 22 months to be implemented.

Disclaimer: This content has been sourced and edited from Dainik Jagran. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.