The 7th Pay Commission’s DA will climb by more than 50%; will there be an 8th CPC? The Modi government responds

8th Pay Commission News: The Dearness Allowance (DA) rate for Central Government Employees is expected to cross 50% or even more by January 2024.

News from the Eighth Pay Commission: By January 2024, the Dearness Allowance (DA) rate for Central Government Employees is predicted to reach 50% or higher. The rate of DA is now determined by the 7th Pay Commission’s proposal. To offset the impact of inflation, the last pay panel proposed that future pay revisions be done when DA/DR reaches 50% or more of the base salary. Is the government preparing to form the 8th Pay Commission in light of this?

According to the Finance Ministry, no such suggestion is being considered for the formation of the 8th Pay Commission.

“No such proposal is under consideration by the Government,” Union Minister of State for Finance Pankaj Chaudhary stated in a written response to a Rajya Sabha question on July 25, 2023.

Chaudhary was responding to a member’s question, “As the rate of DA/DR is projected to cross 50% or even more by January 2024, has the Central Government proposed to set up the Eighth Central Pay Commission?”

Previously, the government denied contemplating any proposal to form 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 (CPS) 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.”

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