7th Pay Commission: 8th Pay Commission for Central Govt. Employees Soon? Check New Formula for Pay Structure

The Central Government employees have been paid according to the 7th pay commission since April 1, 2022. In January 2022, the government announced a Dearness Allowance (DA Hike) increase. However, according to various reports, conversations for the 8th pay commission have been ongoing, and an update has been provided.

According to the latest information, the 8th Pay Commission is unlikely to be implemented. The administration is working to eliminate pay commissions entirely. The central government is now considering giving employees performance-based pay raises, similar to what is done in the private sector. ​​

Here’s What Arun Jaitley Hinted:

Arun Jaitley, the then-Finance Minister, stated in 2016 that the government should focus on its employees rather than pay commissions. He made the statement during a speech in Parliament.

Reports have also surfaced claiming that the 'Automatic Pay Revision' route will now be applicable. The government, on the other hand, has yet to verify any such claims. ​​

Dearness Allowance Hike:

For central government employees, the Dearness Allowance (DA Hike) is updated twice a year. The most recent revision is scheduled for July of this year. It was last updated on January 2022. ​​

New formula for pay structure:

Justice Mathur had indicated at the time of the recommendations of the 7th Pay Commission itself that they want to move the pay structure to the new formula (Aykroyd Formula). In this, the salary is fixed keeping in mind the cost of living. The need of the hour is that employees should be given a salary as compared to inflation. 

The Aykroyd formula was given by the author Wallace Ruddell Aykroyd. He believed that with the increase in their price, the salary of the employees should increase.