8th Pay Commission: Central government employees and pensioners are waiting for the notification of the 8th Pay Commission. According to experts, many old allowances may be abolished this time. Know what impact it may have on salary and pension.
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8th Pay Commission: Central government employees and pensioners are eagerly waiting for the final notification of the 8th Pay Commission. The biggest question along with the fitment factor is how many old allowances will be abolished in the new salary structure and how much will the total salary of the employees increase.
Experience of 7th Pay Commission
During the last 7th Pay Commission, 196 allowances were reviewed. Out of these, it was recommended to abolish 52 allowances and include 36 in other allowances. After this, the government removed many allowances and gave some a new name and structure.
Experts believe that a similar process can be adopted in the 8th Pay Commission as well. This time the principle of ‘less allowance, more transparency’ will be followed.
Which allowances can be affected?
Officials estimate that travel allowance, special duty allowance, small regional allowances and some departmental allowances like old typing/clerk allowances can be abolished. Due to digitalization and new administrative systems, the salary structure can be simplified and made transparent by removing irrelevant allowances.
Will there be an impact on the salary of employees?
The reduction in allowances does not mean that the total earnings of the employees will be less. Usually the government balances the removal of allowances by increasing the basic salary and Dearness Allowance (DA). This will also benefit pensioners, because pension is calculated on basic salary and DA, not on separate allowances.
Status of 8th Pay Commission
The central government is yet to issue the official notification of the 8th Pay Commission. The Terms of Reference (ToR) of the commission and the appointment of the chairman and members are yet to be finalised. The ToR will determine how the commission makes recommendations on pay structure, allowances and other benefits. In January 2025, the Modi government had announced the commission and started the process of inviting suggestions.
