A very encouraging news is coming out for the central employees. With the formation of the 8th Pay Commission, discussions regarding salary hike are hot among the employees. Various employee organizations and unions of the Central Government have increased their voice regarding their demands. Employees argue that in view of rising inflation and today’s economic conditions, the existing salary structure is now outdated, hence there is a strong need for major changes in it. Employee organizations have demanded a huge increase in salaries up to 65 percent.
Employee unions have proposed sweeping changes in the wage structure. Their main demand is that when Dearness Allowance (DA) goes above a certain limit, it should be directly merged into the basic pay. He believes that this merger will not only strengthen the salary base but will also pave the way for a stable path for increase in dearness allowance and other allowances in future. Along with this, in view of the increasing cost of living in big cities, there has been a demand for immediate amendment in House Rent Allowance (HRA) and Traveling Allowance (TA).
The biggest discussion is about ‘fitment factor’. At present the employee unions are adamant on the demand of fitment factor of 3.83. If the government accepts their demand, the government employees will be in trouble. According to reports, if this demand is accepted, the minimum basic pay of entry level (Level-1) employees may jump to Rs 69,000 from the current Rs 18,000. This reform will not only increase the ‘take-home salary’ of the employees, but will also make government jobs more attractive and competitive.
The Central Government has approved the constitution of the 8th Pay Commission and its ‘Terms of Reference’. This decision is going to affect about 1.2 crore central employees and pensioners of the country. However, economic analysts believe that the path of the government is not easy. The Commission will have to strike a right balance between the demands of the employees and the fiscal deficit of the country. At present, the eyes of the entire country are fixed on the next step of the government and official recommendations.
