The 8th Pay Commission Update | No Plans Ahead of National Elections | Reviewing the New Pension Schem

The 8th Pay Commission Update | No Plans Ahead of National Elections | Reviewing the New Pension Scheme

The 8th Pay Commission Update | No Plans Ahead of National Elections | Reviewing the New Pension Schem

8th Pay Commission Update

Introduction : 

Government employees, currently under the 7th Pay Commission, have long awaited news about the implementation of the 8th Pay Commission. 

The hope has been for an increase in the salaries of central employees. In a recent development, Finance Secretary TV Somanathan has provided a significant statement regarding the 8th Pay Commission.

No Plans Before National Elections : 

Despite the anticipation, Somanathan clarified that the central government has no intentions to institute the eighth pay commission for approximately 54 lakh central government employees and pensioners before the upcoming national elections next year.

Historical Context : 

Traditionally, governments, especially in the run-up to elections, have used the establishment of pay commissions as a strategic tool to win the favor of central government employees, armed forces personnel, and family pensioners. 

Notably, the 7th Pay Commission was introduced by the Congress-led UPA government just months before state and general elections.

BJP's Approach : 

In contrast, the BJP has chosen a different path, refraining from announcing the 8th Pay Commission. 

Instead, the focus has been on addressing concerns related to the new pension scheme, which has become a contentious issue for both new state and central government employees.

Reviewing the New Pension Scheme :

The new pension scheme has garnered attention due to the contribution structure. Currently, employees contribute 10% of their basic salary, while the government contributes 14%. 

This has sparked political controversy, with several opposition-ruled states reverting to the old pension scheme, providing pensioners with a monthly guarantee of 50% of their last drawn salary. 

To address this, the government established a committee, led by the Finance Secretary, to review the system.

Committee's Progress : 

Somanathan assured that discussions with all concerned parties have concluded, and the committee's report should be submitted soon. 

The government may consider changes to ensure employees receive a minimum of 40 to 45 percent of their last salary.

Conclusion : 

In summary, the Finance Ministry is under growing political pressure as elections approach. Despite this, the government has clarified that there are no immediate plans to set up the 8th Pay Commission. 

The focus remains on addressing concerns related to the new pension scheme, with potential changes on the horizon. 

The upcoming state poll results are anticipated as a prelude to the 2024 national election, further emphasizing the political landscape surrounding these developments.

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