The 8th Pay Commission was being waited for high salary hikes for central government employees. However, recent development heralds the fact that we may not be seeing the implementation of the 8th Pay Commission despite Growth of the Employees’ Salary on the Popular Alternative Agenda. The article now explains the reasons behind the decision and indicates more ways of a rise in the pay of central employees.
Why the 8th Pay Commission Won’t Be Implemented
Many central government employees earnestly awaited the 8th Pay Commission as they hoped to see a big hike in their salaries. However, the government made it quite clear that this scheme wouldn’t be introduced for now. Lots of reasons had brought this about.
The economic issues are, naturally, a chunk of the reason for the lack of introduction. The entirety of Indian economy had already been a bit strained for various reasons in recent years, but the COVID-19 pandemic definitely hit it more than ever. This has put a strain on government finances, and every avenue with which to save money is now being sought.
The real tabling of interest in the formation of a next commission actually gets taken up in thinking about the bill it might cost to get such a commission formed. Wariness over financial commitment is what is keeping the government from going down that road.
The next reason worked: even after much demand of the above mentioned Earnings. Upon acceptance of the 7th Pay Commission, government employee salaries saw a major increase as it introduced a new Pay Scale. This ruling class has told us over and over that the pay scale they are now on is okay, and a new Pay Commission is never needed to cause unnecessary burdens on the state exchequer. So, the Government is thus exploring other strategies for managing inflation-adjusted salaries.
How Will the Salary of Central Employees Increase?
Regardless of the government’s decision not to implement the 8th Pay Commission, central government employees can expect a few hikes in salary. One common methodology includes an increase in Dearness Allowance (DA) that gives compensation in line with inflation as the cost of living increases and acts as a hedge against purchase power erosion by the employees.
Alternatively, performance-based adjustments might be introduced by the government. Smothering under performance considerations while advocating productivity, employees who excel in their role may easily be rewarded with better increases in salary, depending on the best performance and other bonuses and call it a performance-based salary structure. Every single person’s contributions would then be characterized and rewarded with larger financial rewards for higher performers.
Perhaps the government could consider coming out with time-bound promotions, which would secure to some extent the progression for the employees in the pay scale after making progress in their careers. These will be linked to years of service with likely pay raises and promotions. What an indirect way for one to see how her or his salary is also improving year on year!
Special allowances would be under regular scrutiny and revision. Several central government employees posted to difficult terrains and remote posts get special allowances to compensate for the hardships they face. Possibly even more of these allowances would be increased, giving a hike on the total salary package for such employees.
Readjustments in the retirement benefits sphere could also be likely. Here, the central government employees could observe some promotions in pension schemes and gratuity benefits, two corners that promise well-being after exercising work service for the government. This would facilitate an overall enhancement in total compensation to the employees though not implying higher immediate salary increments by means of active services.
The government can announce special packages or one-time bonuses in times of financial and economic hardships, thus offering some immediate relief to the employees. During such a period, it can plant some money in the pockets of its employees for that period until the demands become levy-able on the economy or articulatable changes lead to woods; it would eventually withstand the inflation and pricing wrist.
To Conclude: Onward To Some Flexibility
There would indeed be no 8th Pay Commission! But central employees are not without hopes because salary increases are still under the contemplation of the Indian government through mechanisms such as DA increases, performance-related increases, time-bound promotions in addition to perks like higher allowances or pensions. Low key, but those increments do not come at higher salary hikes, even though something of small and entertaining quantities, on the frontiére visions.