8th Pay Commission: The Cabinet meeting chaired by Prime Minister Narendra Modi approved the formation of the Eighth Pay Commission. This commission will review the salaries, allowances, pensions, and other benefits of 5 million active employees and approximately 6.9 million retired employees. Based on this, it will recommend salary increases.

Typically, a Pay Commission is formed every 10 years. The last, the 7th Pay Commission, was formed in 2014. Its recommendations were implemented in 2016. Now, the question is which employees will benefit from the 8th Pay Commission and which will not.

Which employees will benefit?
The Pay Commission benefits only those employees who receive salaries from the Central Government's Consolidated Fund. This means that all officers and employees of the Central Civil Services are covered under this scheme. However, those in Public Sector Undertakings (PSUs), autonomous institutions, and rural postal workers will not benefit. Similarly, Supreme Court judges will not benefit from this commission. Their salaries and allowances are determined under separate rules.

How is the salary increase formula determined?

Inflation Rate - The Commission first examines the inflation rate over the past year and its impact on employees' lifestyles. It recommends salary increases proportionate to inflation.

National Economy - Salary increases are more likely when the country's economic situation is good. Increases are limited when the fiscal situation is weak.

Employee Performance - The Commission also assesses employee productivity and efficiency.

Market Salary Level - The Commission also studies private sector salaries to ensure there is not too much disparity between government and private employees.

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