Even as the Cabinet issued its nod for the increment of DA and DR, there was no word yet on the Terms of Reference (ToR) for the 8th Pay Commission.
The formation of the pay panel, which leads to a once-in-a-decade salary overhaul for government employees, received the Cabinet’s greenlight in January this year. However, the ToR for the 8th Pay Commission is yet to be approved.
Employee union leaders await the Centre’s clearance for the ToR, which will serve as the broad framework for the commission. Once the terms are set, then the panel will be formally setup.
After being formally constituted, the 8th Pay Commission will hold discussions various stakeholders, before proposing the fitment factor and other modalities for the revision of salaries and pensions. The entire process, as per the precedent, takes around 18 months.
In recent months, brokerages have indicated that the fitment factor—the multiplication unit used for salary revision—to be recommended by the commission may range between 1.8 to 2.46. This could result in an effective wage hike of 14% to 34%.
