Will 8th Pay Commission be announced in Budget 2024? What employee unions have said

Pay commissions are formed once in 10 years by the central government to recommend the fitment factor for the revision of basic salary, pension and other allowances for its employees and pensioners.

The last pay panel was formed in February 2014, and its recommendations came into effect from January 1, 2016. Therefore, the 8th Pay Commission is due for implementation on January 1, 2026.

Employee unions expect the government to expedite the announcement of 8th Pay Commission, as this would lead to the setup of the wage board which will consult various stakeholders and submit its recommendations. The entire process may take several months for completion.

Will 8th Pay Commission be announced in Budget 2024?

According to Shiv Gopal Mishra, the Secretary of National Council (Staff Side) of Joint Consultative Machinery (JCM) – a recognised body of central government employees – the government should expedite the formation of the wage board.

"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.

Separately, the Confederation of Central Government Employees and Workers, another key body representing the employees and pensioners, wrote to the Union Cabinet Secretary earlier this month. They called for the announcement of 8th Pay Commission in the upcoming Budget.

OPS, which guarantees 50% of the last drawn pay as pension for retired employees, was replaced with National Pension Scheme (NPS) for employees joining service after 2004. The latter is a market-linked contribution scheme.