8th Pay commission in India

 

·       Do you Know what is pay commission

Pay commission is a body set up by the Government to review and recommend change in the salary structure benefit and allowance of government employees.

It aims to that the competition and reflection the economic condition.

Last pay commission was 7^th pay commission come in 2016

It calculates using a fitment factor that multiplies the current basic pay of government employees.  In 8^th pay commission salary hike expected 186% increased.

 In India the pay commission is usually established every 10 year.  It check some factor and increase according to inflation and other things.

 

Important point about 8^th pay commission

 

·         Salary Revision

·         Allowance

·         Pension

·         Economic impact

·         Career growth

·         Impact on Government Employ Welfare

Salary Revision

The 8^th pay commission will recommend changes in the basic pay and pay scale for central government employ considering living cost inflation etc. In the new pay commissions there will many change implemented. New pay band may be introduced with higher salary for many jobs. The new pay commissions also recommend the merger of certain pay grades or positions.

Allowance

Good news for employs , 8^th pay commission is expected to propose revisions and recommendation for various type of allowance for central government employees.

Dearness Allowance(DA), House Rent Allowance(HRA) and other benefit ma added or increase. The DA is expected to increase according to inflation rated to ensure the salary of govt. employees rising cost to living. The commission may recommended  revision DA on regular bases so match the inflation .

 

 Pension

It will some expected change in pension after implementation of 8^th pay commission. Pay commission generally increase basic pay and  pension given on basic pay so if basic pay increase than pension will increase. It will be expected to change the formula to calculate of pension. In some case the commission will increase the pension amount accordingly inflation rate and living expenses.  In 7^th pay commission the pension was calculated as 50% of the average of the last 10 month of basic pay.

Economic impact

Short-term economic Changes: - The increase salaries for government employees could act as a short term economic growth but it’s depend on government decisions.

Increased Tax Revenue :- If the salary for the govt. employees will increase than the tax revenue will also increase.

Government employees higher income would lead to more taxable income which could benefit the government fiscally.

 

Career growth

The most important impact about career growth in 8^th pay commission will be higher salary batter allowance an improved job security for the govt. employees , increase motivation and job satisfaction , advancement opportunities. It will attract more talent to the public sector, promote skill development and foster a positive work environment all of which enhance career growth and productivity.

 

Impact on Government Employ Welfare

8^th pay commission impact on govt. employ welfare :- The commission could recommend educational allowance, training program, career growth opportunity. This thing will allow the employee to improve their work life balance . it will should  introduce some more important thing dedicated to employee welfare.