8th Pay Commission: The dearness allowance for employees has been raised by the central government by four percent. As of right now, the Dearness Allowance, or “DA,” rate has risen from 42% to 46%. The DA of central staff has been rising by four percent over the past few years. DA rates can go up by four to five percent in January of the next year as well. The employees’ salary will be adjusted if this occurs. There will also be a 25 percent rise in certain types of allowances.
Anticipating the 8th Pay Commission
The Eighth Pay Commission must be formed by the Central Government. Employees of the central government will be happy to hear that. The Seventh Pay Commission had suggested that the Center’s “pay” adjustment should only occur every ten years; it is not required. You don’t have to wait for this time frame. Periodicity is another possibility. The Pay Commission hasn’t, however, provided a precise description about the timing and duration of the commission’s formation.
Central Government Employees and Pensioners Benefit from 4% Rise in Disability Benefits
Starting on July 1st, almost a crore central government employees and pensioners received a 4 percent rise in disability benefits. The All India Defence Employees Federation (AIDEF) General Secretary, C. Sreekumar, brought up the topic of “OPS” during a staff side meeting with the National Council (JCM), stating that the personnel’s DA rate had already reached 46%.
Anticipating the 50% Milestone in Dearness Allowance for Central Government Employees
After that, in January 2024, when the dearness allowance will grow by four or five percent, that percentage will rise to fifty percent or higher. The Central Government will then be presented with a compelling proposal to constitute the 8th Pay Commission. Let us inform you that the All India Consumer Price Index (CPI-IW) was 132.8 in January 2023. In February, it was 132.7. In March, it rose to 133.3. measured in April at 134.2. In May, it was 134.7. In June, the CPI-IW surged to 136.4. Since January, there has been a 4% increase in the DA of central staff. In January and July, the DA rate was 42 percent and 46 percent, respectively.
Optimism Among Central Government Employees for 51% DA Rate in January 2024
Employees at the centre are now optimistic that in January of next year, their DA rate would rise to 51%. In January 2024, the government has the option to raise it to five percent. The employees’ pay and benefits will be adjusted if this occurs. As of July 2023, the CPI-IW was 139.7. It scored 139.2 points in August. November, December, October, and September might see the CPI-IW stay at 140.2. He is eligible to receive five percent DA in January 2024 in this scenario. The government will need to establish the Eighth Pay Commission if this takes place. Initiated in 2013, the Seventh Pay Commission saw the implementation of its recommendations in 2016.
Understanding the Compilation of the All India Consumer Price Index (CPI-IW)
Every 16 months, the Labour Bureau, a division of the Ministry of Labour and Employment, compiles the Price Index for Industrial Workers using data on retail prices gathered from 317 marketplaces located in 88 significant industrial hubs across the nation. The index covers all of India in addition to 88 industrial centres. The final working day of the subsequent month marks the release of this compilation. In August 2023, the All India Consumer Price Index (CPI-IW) dropped to 139.2 points, a decrease of 0.5 points. In comparison to the prior month, the index dropped by 0.36 percent. A year earlier, there was a 0.23 percent increase between these two months.
Regional Variations in the All India Consumer Price Index
Jaipur’s index has dropped by a maximum of 4.4 points at the centre level. Three to 3.9 points were lost in the remaining three centres, two to 2.9 points in eleven centres, one to 1.9 points in thirteen centres, and 0.1 to 0.9 points in twenty-two locations. In comparison, Cuttack has shown a maximum growth of 4.4 points. Jalandhar, which has gained 4.0 points, comes next, followed by Dadra & Nagar Haveli and Kollam, each of which has gained 3.7 points. The other three centres have experienced an increase of 2.9 points, nine centres have had an increase of 1 to 1.9 points, and eighteen centres have seen an increase of 0.1 to 0.9 points. The remaining four centres’ indices did not change. In August 2023, the rate of inflation was 6.91 percent, up from 7.54 percent in the previous month and 5.85 percent in the same month the previous year. The rate of food inflation was 10.06 percent, down from 6.46 percent in the same month last year and 11.87 percent this month.
The Challenge of Maintaining Real Income
There has been a 42 percent increase in employee salaries and pensions between January 2016 and January 2023, according to questions and answers on this topic in Parliament. Over this time, the nation’s per capita income has grown by 111%. Pankaj Choudhary, the state minister of finance, stated in the house that DA/DR is granted to make up for the inflation-related decline in the real value of salaries and pensions. Currently, 42% of DA is present. The income per person tripled. In tandem with this, the cost of items has also gone up correspondingly. In other words, low pay is a reality for employees of the central government. The last three pay commissions have stated that future pay revisions should be made to lessen the impact of inflation once the DA hits 50%. In January 2024, DA will surpass 50. In Parliament, the State Minister for Finance declared that the government has not yet received a proposal to form the Eighth Pay Commission.