8th Pay Commission under consideration? Here's what Finance Ministry has to say

8th Pay Commission: The Centre does not plan to constitute the 8th Pay Commission any time soon, the Finance Ministry said on Tuesday, December 3. Minister of State in the Ministry of Finance, Pankaj Chaudhary, in a written reply to a question in Rajya Sabha, clarified that the government is not considering any proposal to form the 8th Pay Commission.

“No such proposal is under consideration with the Government for constitution of Eighth Central Pay Commission for the Central Government employees, at present (sic),” the Finance Ministry said. Currently, the 7th Pay Commission's recommendations are in effect.

Rajya Sabha members and Samajwadi Party leaders Javed Ali Khan and Ramji Lal Suman questioned the government on the formation of the 8th Pay Commission. They further asked if the fiscal condition of the Union is not allowing an increase in the salaries of central government employees.

The government appoints a pay commission to review and recommend changes to the salary structure of government employees, taking into account factors such as inflation, the state of the economy, income disparities, and related factors. In addition to basic pay, the commission reviews bonuses, perks, allowances, and other benefits provided to government employees.

Since 1946, the government has established seven pay commissions so far.

Currently, the recommendations of the 7th Pay Commission, formed in 2014 by the Manmohan Singh-led UPA government, are being followed. The recommendations of the 7th Pay Commission were implemented on January 1, 2016. According to official data, the 7th Pay Commission recommendations were expected to cover over 1 crore employees, which includes over 47 lakh central government employees and 53 lakh pensioners.

Recommendations of 7th Pay Commission 

1. The minimum pay for an entry-level recruit will be ₹18,000 per month, whereas the minimum pay for a new Class I Officer is ₹56,100 per month.
2. The Commission recommended increasing the maximum salary of government employees to ₹2.5 lakhs for top-level employees such as Cabinet Secretaries and similar posts.
3. The rate of annual increment was unchanged at 3%, as per the 7th Pay Commission pay matrix.
4. The upper limit of gratuity was increased from ₹10 lakhs to 20 lakhs.
5. A health insurance scheme was introduced for Central government employees and pensioners.