1. Context and Announcement
Timing: Days ahead of the Delhi Assembly election, the Union government approved the formation of the Eighth Pay Commission.
Demand: This decision addressed long-standing demands from Central trade unions and employees’ organisations.
Announcement Details:
Announced by Union Information and Broadcasting Minister Ashwini Vaishnaw after a Cabinet meeting.
Decision credited to Prime Minister Narendra Modi.
2. Composition and Function
Chairperson and Members:
A Chairperson and two members will be appointed shortly.
Typically, a retired Supreme Court judge heads the Pay Commission.
Example: The Seventh Pay Commission was headed by Justice A.K. Mathur (retd).
Function: The Pay Commission will review and recommend revisions in salaries, pensions, and allowances for Union government employees and retirees.
3. Beneficiaries
Approximately 50 lakh employees and 65 lakh pensioners of the Union government.
Includes serving and retired defence personnel.
In Delhi alone, about four lakh Union government employees stand to benefit.
4. Previous Pay Commission
The Seventh Pay Commission began operations in 2014 and submitted its report in 2016.
Implementation occurred in November 2016, incurring an additional expense of ₹1 lakh crore in 2016-17.
5. Economic and Social Impact
Public Sector and States:
Recommendations influence wage settlements in public sector undertakings (PSUs) and trigger similar pay revisions in States.
Economic Growth:
Expected to boost consumption and economic growth.
Enhances the quality of life for government employees.
6. Strategic Early Implementation
The Seventh Pay Commission’s term officially ends in 2026.
Proactive Decision: Approval of the Eighth Pay Commission ahead of schedule reflects a strategic move by the government.
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