8th Pay Commission finds no mention in Budget, but pay matrix of govt staff still eligible for revision; check details

The Union Budget for fiscal year 2024-25, presented by Finance Minister Nirmala Sitharaman on July 23, made no mention of the 8th Pay Commission.

Scores of government employees and pensioners were awaiting an announcement related to the formation of the pay panel, which would recommend the fitment factor and other guidelines for the revision of their basic salary and allowances.

Normally, the pay commissions are formed once in 10 years for an overall revision in the remuneration of government employees. The last such panel, 7th Pay Commission, was constituted in February 2014 and its recommendations were implemented from January 1, 2016.

A day before the Budget was rolled out, Minister of State for Finance Pankaj Chaudhary told the Lok Sabha that no proposal for the setup of 8th Pay Commission was currently under consideration. However, two representations were received for the constitution of the pay panel in June 2024, he confirmed.

The National Council (Staff Side), Joint Consultative Machinery (NC-JCM) was one of the recognised bodies of central government employees and pensioners that had written to the government in June, seeking an early announcement related to the formation of the 8th Pay Commission.

Pay matrix still eligible for revision

The pay matrix of central government employees, which determines their basic wage, can be revised even before the 8th Pay Commission is announced, according to Mishra.

Normally, the pay matrix is revised based on the fitment factor suggested by the pay commissions, which are formed once in 10 years.

However, the 7th Pay Commission had recommended a revision in the pay matrix of employees once the dearness allowance reaches 50% of the basic wage, Mishra explained.

Ahead of the general elections, the Centre had issued a notification in March to increase the DA of central government employees by 4%. This took their DA from 46% of the basic pay to 50%. The hike was to come into effect retrospectively, from January 1, 2024.

Apart from the pay matrix, several other allowances paid to central government employees and pensioners are also eligible for revision as the DA has reached 50%.

The EPFO, in a circular dated July 4, 2024, listed 13 allowances that will be revised by up to 25% with effect from January 1, 2024.