8th Pay Commission: Eighth Pay Commission formed before the budget

8th Pay Commission: Eighth Pay Commission formed before the budget, how much will it affect the economy? Understand the complete math

8th Pay Commission News Information and Broadcasting Minister Ashwini Vaishnav said that the chairman and two members of the commission will be appointed soon. The Pay Commission holds extensive consultations with the central and state governments and other stakeholders before giving its recommendations to the government. It is worth noting that the first Pay Commission was constituted in May 1946.

 New Delhi. The Central Government on Thursday decided to constitute the Eighth Pay Commission to give recommendations on increasing the salary, allowances and pension of central employees and pensioners. Information and Broadcasting Minister Ashwini Vaishnav informed that Prime Minister Narendra Modi has approved the proposal to constitute the Eighth Pay Commission.

This decision will benefit 50 lakh employees working in the central government (including those working in the armed forces) and 65 lakh pensioners. This decision will increase the financial burden on the government, but it will also have the effect of increasing the demand for various products and services in the country.

The decision could prove crucial

Considering the way the Indian economy is currently struggling with lack of demand, this will have a positive impact. There are four lakh central government employees (including armed forces) in Delhi who will benefit from this decision. This decision can prove to be important in view of the Delhi elections.

Vaishnav said, 'Since independence, a pay commission has been formed at regular intervals to give suggestions on increasing the pay scale of central employees. The last time the recommendations of the Seventh Pay Commission were effective from 2016. Although the Eighth Pay Commission was to be formed next year in 2026, but the Prime Minister has taken this decision now so that it gets enough time to give recommendations and the government to decide on it.'

We are all proud of the efforts of all government employees who are working to build a developed India. The Cabinet's decision on the Eighth Pay Commission will improve the quality of life and boost consumption. - Narendra Modi, Prime Minister

The previous commission was set up by the Manmohan government

When salaries and allowances etc. increase after the recommendations of the Pay Commission, it has a positive impact on the entire economy. The Seventh Pay Commission was constituted in February 2014 by the then Manmohan Singh government and its recommendations were implemented by the Modi government from January 1, 2016. In the year 2016-17, the government's expenditure increased by Rs 1 lakh crore to implement the recommendations of the Seventh Pay Commission.

increase in salary and pension

However, the recommendations of the Seventh Pay Commission were not fully implemented by the Centre. However, due to the decision taken by the Central Government to increase the salary and pension, the minimum basic salary in the Central Government increased from Rs. 7,000 to Rs. 18,000 per month and the minimum pension increased from Rs. 3,500 to Rs. 9,000 per month. While the maximum salary was fixed at Rs. 2.50 lakh and the maximum pension at Rs. 1.25 lakh.

Demand will increase and government revenue will also increase

1.Government sources said, it has generally been observed that for two-three years after the implementation of the Pay Commission report, there is a surge in demand for new houses, cars and household goods. Its positive impact has also been seen on tourism.

2.However, its effect is also seen on inflation because the demand in the market increases. Also, the government's revenue increases because most government employees pay more taxes.

3.The Pay Commission also recommends a formula for revision of Dearness Allowance and Dearness Relief for Central Government employees and pensioners to deal with inflation. Dailymintz