8th Pay Commission News: The Dearness Allowance (DA) rate for Central Government Employees is expected to cross 50% or even more by January 2024
8th Pay Commission News: The Dearness Allowance (DA) rate for Central Government Employees is expected to cross 50% or even more by January 2024. The rate of DA is currently decided by the recommendation of the 7th Pay Commission. The previous pay commission had also recommended that future pay revision should be done when DA/DR reaches 50% or more than the basic pay to neutralize the impact of inflation. In view of this, is the Government planning to constitute the 8th Pay Commission?
According to Finance Ministry, there is no such proposal under consideration for the constitution of the 8th Pay Commission.
“No such proposal is under consideration of the Government,” Union Minister of State for Finance Pankaj Chaudhary said in a written reply to a query in the Rajya Sabha on July 25, 2023.
Chaudhary was replying to a query by a member who asked, “as the rate of DA/DR is projeced to cross 50 per cent or even more from January 2024, whether the Central Government proposed to set up Eighth Central Pay Commission?”
In past also, the Government has denied considering any proposal to constitute the 8th Pay Commission.
“Dearness Allowance (DA) and Dearness Relief (DR) are paid to Central Government employees and pensioners to compensate them for erosion in the real value of their pay and pension on account of inflation. These rates were increased to 42% of the pay and pension in January 2023. The rates of DA/DR as revised periodically every six months on the basis of All India Consumer Price Index for Industrial Workers (AICIP-IW),” Chaudhary said.
Review of 7th Pay Commission Pay Matrix
Replying to another query on whether the Government has not considered para 1.22 contained in the 7th Central Pay Commission (CPC) report which recommended that the pay matrix of Central Government Employees may be reviewed periodically without waiting for a long period of 10 years based on Aykroyd Formula, Chaudhary said, “The Government has not considered this issue while according the approval of the revision of pay and allowances based on Seventh Central Pay Commission.”
Further, on the question of the 8th Pay Commission, the minister said, “No such proposal is under consideration with the Government for constitutions of Eighth Central Pay Commission for Central Government employees.”