8th Pay Commission Approved by GOI

The Union Cabinet approved to set up 8th Pay Commission to revise salaries of central government employees and allowances of pensioners.

8th Pay Commission Approved by GOI

The Union Cabinet approved to set up 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 at a meeting of the Cabinet chaired by Prime Minister Narendra Modi, Union minister Ashwini Vaishnaw said. The minister also informed that the chairman and two members of the Commission will be appointed soon.

A pay commission is constituted by the central government once every decade to revise the salary structure of its employees. In addition to revising the salary structure, each pay commission has a term of reference, which broadly defines its focus. Pay commissions also decide pension payments. The 7th Pay Commission was set up in 2016, and its term will end in 2026.

Who is covered under pay commissions?

According to the 7^th Pay Commission, central government employees are all persons in the civil services of the central government and those who are paid salaries out of the consolidated fund of India, which is the account in which government collects its revenues. Employees of public sector undertakings (PSU) and autonomous bodies, and gramin dak sevaks are not under the remit of the 7th Pay Commission. This would mean someone working in Coal India will not be covered.

PSU employees have separate pay scales depending on the undertaking they are working for.

What were the changes in the 7th Pay Commission?

Employee unions demanded a 3.68 fitment factor when it came to salary revision for the 7th Pay Commission, but the government decided on a fitment factor of 2.57. The fitment factor is a multiplier used for calculating salaries and pensions. This led the minimum basic pay to become ₹18,000 per month, compared to the ₹7,000 in the 6th Pay Commission. The minimum pension also rose from ₹3,500 to ₹9,000. The maximum salary became ₹2,50,000 and the maximum pension became ₹1,25,000.