8th Pay Commission: Major Update for Central Government Employees and Pensioners, Possible Removal of Multiple Allowances

The upcoming 8th Pay Commission is expected to introduce several changes for central government employees and pensioners, including the potential removal of outdated allowances. Various reports indicate that certain allowances might be eliminated, while new ones could be introduced based on necessity. The previous 7th Pay Commission had also discontinued several allowances.

Government Approves 8th Pay Commission, Employees Await Implementation

New Delhi: As the new year commenced, the central government approved the establishment of the 8th Pay Commission for government employees, sparking anticipation regarding its structure and recommendations. The official announcement regarding the commission’s chairman and two members is expected next month. If all proceeds as planned, recommendations could be presented next year.

Salary Revision Talks Gain Momentum Following Approval

With the government's approval of the 8th Pay Commission, discussions have intensified regarding potential salary hikes and pension adjustments under the revised fitment factor. However, it is important to note that the Pay Commission does not solely focus on salary and pension increments but also reviews the allowances and benefits extended to government employees.

According to multiple reports, outdated and redundant allowances may be discontinued in the upcoming Pay Commission, similar to what occurred during the 7th Pay Commission. Additionally, new allowances might be introduced based on current requirements.

Allowances Discontinued in the 7th Pay Commission

The 7th Pay Commission, introduced during the tenure of former Prime Minister Manmohan Singh, came into effect on January 1, 2016. During its review, the commission evaluated 196 allowances, ultimately approving only 95 of them. The remaining 101 allowances were either removed or merged with existing ones.

Regarding salary increments, the 7th Pay Commission had established a fitment factor of 2.57, which resulted in a rise in the minimum salary from ₹9,000 per month to ₹18,000 per month. The maximum salary was also revised to ₹2,25,000 per month.

Formation of the 8th Pay Commission Expected Next Month

As per current expectations, the 8th Pay Commission is likely to be officially formed in April. Along with its establishment, the government is anticipated to reveal the names of the commission’s chairman and two key members. The Pay Commission typically requires around a year to compile and finalize its recommendations. During this period, consultations will be held with representatives of central employees and other relevant stakeholders to draft a comprehensive proposal.

Government employees and pensioners eagerly await further updates on the new pay structure and potential allowance revisions under the 8th Pay Commission.