The question of 8th Pay Commission in 2022 is of no significance, and as per precedents, pay panels are set up two years before the roll-out of the recommendations, sources told CNBC-TV18. They also said the next Pay Commission is to be implemented from 2026.
“It’s premature to ask about 8th Pay Commission in 2022. The government will decide on the 8th Pay Commission at an appropriate time,” the sources told CNBC-TV18. They added that the Pay Commissions are set up two years prior to the roll-out of the recommendations.
The government had set up the 7th Pay Commission on February 28, 2014, and its recommendations of the panel were effective from January 1, 2016.
Union Minister of State for Finance Pankaj Chaudhary has also said in Rajya Sabha that no such proposal is under consideration with the government for the constitution of the 8th Central Pay Commission for the central government employees.
He added that the chairman of the 7th Pay Commission had recommended that the matrix may be reviewed periodically without waiting for a long period of 10 years. “It (pay matrix) can be reviewed and revised on the basis of the Aykroyd formula which takes into consideration the changes in prices of the commodities that constitute a common man’s basket, which the Labour Bureau at Shimla reviews periodically. It is suggested that this should be made the basis for revision of that matrix periodically without waiting for another Pay Commission.”
Chaudhary also said that in order to compensate central government employees for erosion in the real value of their salaries on account of inflation, dearness allowance (DA) is paid to them and the rate of DA is revised periodically every 6 months on the basis of the rate of inflation as per the All India Consumer Price Index for Industrial Workers (AlCPl-lW) released by the labour bureau under the Ministry of Labour & Employment.
The retail inflation for industrial workers in June fell to 6.16 per cent, compared with 6.97 per cent in May 2022. The decline was registered on lower prices food and fuel. “Year-on-year inflation for the month stood at 6.16 per cent compared to 6.97 per cent for the previous month (May 2022) and 5.57 per cent during the corresponding month (June 2021) a year before,” the labour ministry said in a statement.
The all-India CPI-IW (Consumer Price Index for Industrial Workers) for June 2022 recorded an increase by 0.2 points and came in at 129.2 points. The CPI-IW in May was 129 points.
Dearness allowance is given to employees based on whether they work in urban sector, semi-urban sector or the rural sector. The union government had raised the dearness allowance by three per cent to 34 per cent on March 31, 2022 for 47.7 lakh central government employees, and a hike in dearness relief was also announced for 68.6 lakh pensioners to provide some relief from inflation.
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