Demand for the establishment of a pay commission continues incessantly among the government employees and pensioners across the country. This demand has gotten even sharper since the recommendations of the last pay commission. Once again, the talk of the 8th Pay Commission has heated up and now the government employees and pensioners are looking forward to the government forming it shortly. Let us now find out about the expectations from the Eighth Pay Commission and what impact it will have.
Need for 8th Pay Commission
The inflation is one big factor that is striking the need for formulating the Eighth Pay Commission. Thus, the purchasing power of the employees is lowered since it has been affected in such a way that income is diminished for the employees with the increase in the inflation rate, resulting in a far lower standard of living. Under such a situation, the new pay commission will, thus, enhance an employee’s income, thereby increasing their purchasing power. In addition, it will entice them towards attractive government jobs.
Expectations from the 8th Pay Commission
Government employees and pensioners expect several vital benefits from the Eighth Pay Commission. Very importantly, a new commencement in the ranging of the basic salary of the employees is purported. As many allowances are calculated on the basic salary, an increase will make those allowances rise. Apart from this, a new fitment factor is being considered, which might as well be beneficial in changing the calculations in the dearness allowance. Moreover, the current minimum salary of employees stands at Rs 18,000 monthly, and it might be hiked. Other than that, good facilities will also come up for the pensioners.
The history of Pay Commission in India
Myriads of Pay commissions of the seven such constitution have finalized over different periods, whose recommendations have increased the salaries and allowances of the employees. It can be said that all of the commissions, from the first to seventh pay commission, took vital steps for improving the salaries of the employees. The recommendations proposed by the eighth pay commission would also be vital for the employees.
Effect of 8th Pay Commission
If the Eighth Pay Commission has been set up, then there is going to be an impact from this on the government treasury because the increased salary pays the extra expenditure to the government as well. However, this will increase employees’ purchasing power, increase market demand and will be positive for the economy. Moreover, the increased salaries of government employees will also create pressure on the private companies possibly forcing them to increase salaries of employees.
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