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  1. Pay matrix eligible for revision even before 8th Pay Commission gets announced, says employee union

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Pay matrix eligible for revision even before 8th Pay Commission gets announced, says employee union

Upstox

3 min read | Updated on July 15, 2024, 18:19 IST

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SUMMARY

"7th Pay Commission had given a recommendation that after the increase of DA to 50% (of the basic wage), the pay matrix should be revised. Now, the DA has already been raised by 50%," union leader Shiv Gopal Mishra said.

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The revision of salaries and allowances in accordance with the 8th Pay Commission is due on January 1, 2026

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 an employee union.

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, said Shiv Gopal Mishra, Secretary, National Council (Staff Side), Joint Consultative Machinery -- a recognised body of central government employees and pensioners.

"7th Pay Commission had given a recommendation that after the increase of DA to 50% (of the basic wage), the pay matrix should be revised. Now, the DA has already been raised by 50%," Mishra told Upstox. Therefore, the pay matrix is eligible for revision even before the implementation of 8th Pay Commission, he added.

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.

When is 8th Pay Commission announcement expected?

The constitution of 8th Pay Commission to revise the salary and allowances of central government employees, and the monthly pension paid to pensioners, is expected in the next couple of months, according to the employee unions.

On being asked whether there is any possibility of the announcement being made in the upcoming budget, Mishra told Upstox, "That will be better... But we are expecting that by September, they must announce."

"As far as the Staff Side (JCM) is concerned, we have already submitted a letter to the Union Cabinet Secretary, and made our request before the Finance Minister," he added.

Mishra had written to Union Cabinet Secretary Rajiv Gauba in June, urging him to prioritise the formation of the 8th Pay Commission as it is awaited by over 1 crore government employees and pensioners.
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