It has the potential to become a prominent commission-like body that would finalize salaries and allowances for the entire cadre of the Government of India employees and the State Governments, for instance. For the time being, the talks have really escalated when it comes to the 8th Pay Commission. This is another major commission that would be focusing on salary changes for the employees, pensioners and officers of the centre and state governments. On the other hand, it is another reason behind the very important issue concerning the amendment in Dearness Allowance (DA) of employees.
Purpose Of 8th Pay Commission
The recommendations of the 7th Pay Commission were put into effect in the year 2016. After that, inflation has increased enormously, disrupting the purchasing power of the employees. All this has evoked cries for the 8th Pay Commission, so it can recompute the salaries and allowances of employees according to the economic conditions in relation to inflation. The commission would redefine not just the salary scale but also strike balance between Dearness Allowance (DA) and basic pay.
What Is Dearness Allowance (DA)?
Dearness Allowance is a compensation to workers and local pensioners. This provides some accountability against the rising inflation. Formulated based on Consumer Price Index (CPI), the current DA is being given to employees of central government at 42% rates. However, the continued increase in the inflation rate led the employees to press for enhancement in DA.
Relation Of 8th Pay Commission With DA
The advent of the 8th Pay Commission would also expect a change in the methodology regarding calculation of DA. Presently, calculation of DA is being based on the formula of the 7th Pay Commission. A fresh formula for calculation of DA with this commission can be framed, accounting currently the inflation rate with the economy state. Thus, it can save the lives of employees during inflation from the burning scenario.
Final Thought
The introduction of the 8th Pay Commission may result into a great change among employees of various central and state government departments. Modification in Dearness Allowance (DA) and the betterment of the salary structure would do a great deal for the employees’ financial well-being. But it remains for the government to continue timely and transparent establishment of the commission and implementation of its recommendations. Employees expect this from the commission, and this commission may play a critical role in securing their future.
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