In a significant announcement, the central government has agreed to form the 8th pay commission. The news of the formation of the 8th pay commission are expected to impact positively through The Central Government employee and pensioners across the country. Let’s check out in detail how the 8th pay commission is going to benefit the employees, pensioners and the Indian economy.
Historic decision by the government
The Union Minister of Information and Broadcasting Ashwini Vaishnav shared the information that the prime minister has given the green light to form the constitution of the 8th Pay Commission. This decision will directly benefit the 50 lacs Central employees and 65 lacs Pensioners, including the account forces personnel.
Well, this step is going to put the financial board on the government, but it is expected to increase the demand for goods and services and contribute to economic growth.
Economic Boost Amid Low Demand
The Indian economy is currently facing sluggish demand, and it is expected to receive a positive push from this decision. In Delhi alone, it will directly benefit 4 lakh central employees.
Why the early approval?
Explaining the time sling of the decision Ashwani Vaishno side since independence pay commission has been set up periodically to recommend salary revision for the Central employees. The 7th Pay Commission was established in 2016 and it will be completed in 2026 so the prime minister of India has decided to fast-track the process so that the benefits of the 8th Pay Commission will be delivered to the Central employees and pensioners on the subsequent timeline.
The historical impact of the pay commission
The pay commission has a historical influence on both government finances and the broader economy. The 7th Pay Commission was established in 2014 by Prime Minister Manmohan Singh and salts recommendation was to be implemented in 2016 under the Modi government. This led to the additional expenditure of 100000 crore over the government in the financial year 2016 – 17.
In the 7th pay commission the basic pay as a Central Government employee was raised from rupees 7000 to rupees 18000 and the minimum pension raised from Rs 3500 to rupees 9000. The maximum salary and pension was cab at rupees 2.5 lakh and 1.5 lakh respectively.
Effect of the economy
Government data highlights that the post pay commission implementation leads to high rise in demand of home car and consumer goods lasts for 3 years. The tourism industry also got benefited. So this letter to the increase in inflation on which the government raise the slab of tax which resulted in increased tax revenue for the government.
DNS allowances and relief adjustments
The pay commission formed lyrics the revising dearness allowance and dearness relief for the central government employee and pensioners with help them in managing inflation.
This decision helps the government commit to improving the living standards for both the economy and the employees.