8th Pay Commission: There is good news for 47 lakh central government employees and about 62 lakh pensioners. A four per cent hike in their DA/DR with effect from July 1, is now almost certain. The reason, an increase of 1.7 points has been recorded in the ‘All India Consumer Price Index for Industrial Worker’ index released by the Labor Bureau for June 2023. Now this index has become 136.4. In such a situation, 4 percent increase in dearness allowance/dearness relief to central employees and pensioners from July, 2023 is fixed. With this increase, the DA/DR rate will go up to 46 per cent. In the first week of September, the file of 46 percent DA / DR can get the approval of the Union Cabinet.
1.7 point increase in CPI-IW index
Explain that the ‘All India Consumer Price Index for Industrial Worker’ index is prepared every month. For this, data is collected from 317 markets under 88 important industrial centers of the country. The All India CPI-IW Index for June, 2023 has increased by 1.7 points. This increase of 136.4 is 1.26 percent more than the previous month. A year ago, a growth of 0.16 percent was registered between the same month. The maximum upward pressure on the current index has come from the Food & Beverages group. These two groups contributed 1.62 percentage points to the total change. If we see on the basis of items, rice, wheat, flour, pigeon pea, moong dal, fresh fish, poultry chicken, egg-hen, apple, banana, brinjal, carrot, ginger, cauliflower, green chili, potato, onion, tomato, Cumin, Arecanut, Casual Wear, Canvas Shoes, Utensils, Medicine Ayurvedic etc are responsible for the increase in the index. However, this upside was largely restricted by mustard oil, palm oil, sunflower oil, coconut oil, lemon, mango and kerosene oil etc. putting pressure on the index.
The rest of the allowances will also increase by 25 percent.
Central government employees are expected to get 8 percent hike in DA/DR after six months. There is a four per cent increase in DA from July 1. After this, a four percent increase in DA is possible again in January 2024. If this happens, after six months the DA/DR of government employees and pensioners will increase by 8 percent. When the graph of DA hike crosses 50 per cent, then according to the report of the Seventh Finance Commission, the rest of the allowances will automatically increase by 25 per cent. Recently, Minister of State for Finance Pankaj Chowdhary told in Parliament that there is no plan to set up the Eighth Central Pay Commission. The central government is not considering in this context. The special thing is that the Seventh Pay Commission had recommended that pay revision in the center should be done only every ten years, it is not necessary. There is no need to wait for this period. It can also be periodic. However, the Pay Commission did not give any clear definition as to when and after how long the Pay Commission should be constituted.
Will there be re-fixation of salary in 2026?
The last pay commission was constituted in 2013. After three years the recommendations of the commission came into force. According to that salary should be revised in 2026. For this, it is necessary to constitute the commission in 2023. Now the Central Government is refusing to form any such commission. In the questions answered on this issue in Parliament, it has been said that between January 2016 and January 2023, there has been an increase of 42 percent in the salary and pension of the personnel. The per capita income in the country has increased by 111 per cent during this period. Minister of State for Finance Pankaj Chowdhary said, DA/DR is given to make up for the reduction in the real value of salary and pension due to inflation. Now DA has become 42 percent. Per capita income tripled. Along with this, the prices of commodities have also increased accordingly. Meaning, central government employees are working on low wages. It has been said on behalf of the last three pay commissions that when DA reaches 50 percent, pay should be revised in future to reduce the effect of inflation. DA will cross 50 in January 2024.
