No Plans for Eighth Central Pay Commission, Says Government. Download No 8th Pay commission in PDF
In
response to an Unstarred Question No. 870 raised in the Rajya Sabha on
December 3, 2024, regarding the constitution of the Eighth Central Pay
Commission, the Ministry of Finance clarified its stance. The inquiry,
posed by Shri Javed Ali Khan and Shri Ramji Lal Suman, focused on
whether the Government is planning to announce the establishment of the next
pay commission in the upcoming Budget 2025, given rising inflationary trends.
Government’s Response
The Minister
of State in the Ministry of Finance, Shri Pankaj Chaudhary,
addressed the questions with the following points:
- No Proposal Under
Consideration
- As of now, the Government
has no active proposal to constitute the Eighth Central Pay Commission.
- This clarification puts to
rest any speculation about a potential announcement in the Budget session
of February 2025.
- Reasons for Inaction
- The response emphasized
that the Government is not considering this matter presently. However,
the reasons for this decision were not elaborated upon in the reply.
Concerns Highlighted by MPs
The
questions raised by the MPs reflected growing concerns among Central Government
employees about:
- Inflationary Pressures: Unprecedented inflationary
trends affecting the cost of living.
- Need for Timely Pay Revision: The last pay revision was
implemented following the Seventh Central Pay Commission
recommendations in 2016. Employees now expect the next revision to address
current economic challenges.
Fiscal Conditions of the Union Government
When
asked about the Union Government’s fiscal capacity to implement a pay hike, the
Ministry’s response did not explicitly address the fiscal constraints. However,
it is widely understood that:
- Fiscal Discipline: The Government has
prioritized fiscal prudence amidst global economic uncertainties.
- Economic Challenges: High expenditure
commitments, including subsidies, welfare schemes, and infrastructure
projects, may be limiting its ability to allocate funds for a new pay
commission.
What is the Central Pay Commission?
The Central
Pay Commission (CPC) is constituted by the Government of India periodically
to revise the salaries, allowances, and pensions of Central Government
employees and pensioners.
- The Seventh CPC,
implemented in 2016, recommended a 2.57 times hike in basic pay.
- Pay commissions are usually
set up every 10 years, and if the pattern is followed, the Eighth CPC
would be expected around 2025-2026.
Implications of Delayed Pay Revision
- Employee Discontent: Central Government
employees may view the delay in constituting the Eighth CPC as a disregard
for their financial well-being.
- Inflation Impact: With rising inflation, the
purchasing power of employees continues to erode, increasing the demand
for timely pay adjustments.
- Alternative Measures: In the absence of a pay
commission, the Government may consider other mechanisms, such as
inflation-linked dearness allowance (DA) hikes, to provide relief.
Conclusion
While the
Government has clarified that there are no immediate plans for the Eighth
Central Pay Commission, the demands for pay revision continue to grow
amidst inflationary challenges. Whether the upcoming Budget 2025 will address
these concerns through other means remains to be seen. For now, Central
Government employees will have to rely on interim measures like DA revisions to
cope with the rising cost of living.
