No proposal for setting up 8th Pay Commission: Govt

The government is not considering setting up the 8th Pay Commission for central government employees, Minister of State for Finance Pankaj Chaudhary informed Lok Sabha on Monday.

"No such proposal is under consideration with the government for constitution of 8th Central Pay Commission for the central government employees," Chaudhary said in a written reply to a question if the government proposes to ensure timely constitution of Pay Commission for central government employees so that it could be implemented on January 1, 2026.

ln order to compensate central government employees for erosion in the real value of their salaries on account of inflation, dearness allowances (DA) is paid to them and the rate of DA is revised periodically every six months on the basis of the rate of inflation as per All India Consumer Price index for Industrial Workers released by Labour Bureau under the Ministry of Labour & Employment, he said.

The government had set up 7th Pay Commission in February, 2014. The recommendations of the panel were effective from January 1, 2016.