The Confederation of Central Government Employees has appealed to Prime Minister Modi to constitute the 8th Central Pay Commission, citing stagnant wages since 2016 and soaring inflation. If implemented, employees could see a 186% salary hike, with the minimum salary potentially rising from ₹18,000 to ₹51,480.
Employees Demand 8th Pay Commission
Central government employees have urged the government to set up the 8th Pay Commission to address wage stagnation since January 1, 2016. The Confederation of Central Government Employees, representing around 7 lakh employees from various departments, highlighted inflationary pressures and declining purchasing power as reasons for the demand.
Stagnant Wages and Rising Inflation
As of July 2024, the Dearness Allowance (DA) entitlement for employees surpassed 53%, reflecting the impact of rising costs. In a letter to Prime Minister Narendra Modi, the Confederation emphasized how post-pandemic inflation has eroded real income, with essential and non-essential commodity prices rising sharply.
Proposed Revisions in Pay and Pension
The Confederation has proposed a fitment factor of at least 2.86 for the 8th Pay Commission. If approved, the minimum salary of central government employees could jump by 186%, from ₹18,000 to ₹51,480. Similarly, pensions may increase from ₹9,000 to ₹25,740, easing financial stress on retirees.
Arguments for a Timely Revision
In its appeal, the Confederation stressed that revising the pay structure every five years would ensure competitive wages, attract top talent, and bolster governance. It also underlined the adverse effects of inflation, which currently averages 5.5%, and rising interest rates on employees and pensioners.
Government’s Position
Despite growing demands, the Union Finance Ministry has stated in the Rajya Sabha that there are no plans to set up a new pay commission at present. This statement dampens hopes for an immediate resolution to the employees’ grievances.
Conclusion
The 8th Pay Commission proposal represents a significant step toward addressing economic challenges faced by central government employees. However, with no immediate plans from the government, the path to wage revision remains uncertain.
