Pankaj Chaudhary, the Union Minister of State for Finance, informed the Parliament on Monday that the Central Government had no proposal under consideration to form the 8th Central Pay Commission for its employees.
In response to a question in the Lok Sabha about whether the government intends to ensure that the 8th Central Pay Commission is constituted promptly for central government employees so that it can be put into effect on January 1, 2026, Chaudhary refuted the assertion that there won’t be an 8th Central Pay Commission.
“No such proposal is under consideration with the government for constitution of the eighth Pay Commission for central government employees,” Chaudhary said in a written reply to a question in Lok Sabha. He was addressing a question in the House on whether the government proposed to ensure a timely constitution of the eighth Central Pay Commission for central government employees so that it could be implemented on January 1, 2026.
“In order to compensate central government employees for the erosion in the real value of their salaries on account of inflation, the dearness allowances (DA) are paid to them and the rate of DA is revised periodically every six months on the basis of the rate of inflation as per All India Consumer Price index for Industrial Workers released by Labour Bureau under the Ministry of Labour & Employment, the minister said.
The central government determined that the DA would rise by a further 3% in January 2022. DA is now being paid out at a rate of 34% to all government workers. More than 50 lakh government workers and 65 lakh pensioners are benefiting from the revised DA.
Initiated by the government on February 28, 2014, the 7th Central Pay Commission. After ten years, the government employee salary structure will be revised by a pay panel that the Centre has established.
Since 1947, up to seven compensation commissions have been created. The Centre creates a pay commission every ten years to update the pay scale for public employees.