The MTA Speaks: Know Why 8th Pay Commission Was Formed, Its Chairperson, Employee Benefits; Complete Analysis

New Delhi: In India, the Pay Commission not only a means of determining the salaries of government employees, but also a crucial pillar of the country's economic policies, social justice, and administrative reforms. Last week, the Union Cabinet, chaired by Prime Minister Narendra Modi, approved the formation of the Eighth Central Pay Commission. This decision will directly affect approximately 5 million central government employees and approximately 6.9 million pensioners across the country. Senior journalist Manoj Tibrewal Aakash, in his special show 'The MTA Speaks,' provided a comprehensive analysis of the formation of the Eighth Pay Commission, changes to salaries, pensions, and allowances, and how the panel could redefine the future of government pay. With this decision, the main topics of discussion have become the questions surrounding why the Eighth Pay Commission was formed, its purpose, who is its Chairperson, Justice Ranjana Desai, how the Commission will function, when will it submit its report, whom will it consult with, what will the government do after receiving the report, what benefits will government employees receive, and the seven previous commissions. Today, we will explore these issues in detail. In India, a Pay Commission is constituted every ten years to review the salaries, allowances, pensions, and other service conditions of government employees. This tradition began with the first Pay Commission in 1946 and has now reached its eighth iteration. Who is the Commission's Chairperson - Justice Ranjana Prakash Desai? This commission is also special because for the first time, a woman has been appointed as its Chairperson - Justice Ranjana Prakash Desai, a former Supreme Court judge and current Chairperson of the Press Council of India. Justice Ranjana Prakash Desai has played a role in several important decisions in the Supreme Court - leaving a deep impact on matters related to women's rights, freedom of expression, and judicial transparency. In 2023, she became the Chairperson of the Press Council of India, and in that position, she strived to strike a balance between media freedom and accountability. Her appointment signals that the Commission's decisions will now be based not only on economic data, but also on a humanitarian perspective and a sense of social justice. Previously, Justice Ranjana Desai has served on several important government committees, including the Lokpal Search Committee, the Chairperson of the Draft Committee for the Uniform Civil Code in Uttarakhand, and the Chairperson of the Jammu and Kashmir Delimitation Commission. The MTA Speaks: SIR 2.0 Launched; India’s Largest Voter List Verification Drive Ahead of the 2029 Elections Approval for the Formation of the Eighth Central Pay Commission In a way, this government decision sends a clear message that women's leadership is no longer merely an inspiration but also a central driver of decision-making. This decision marks the beginning of a new era of women's participation in the bureaucracy, judiciary, and policymaking. Last week, in a meeting chaired by Prime Minister Narendra Modi, the Union Cabinet approved the formation of the Eighth Central Pay Commission, a decision for approximately 5 million government employees and approximately 6.9 million pensioners across the country. Why was the Eighth Pay Commission established? This is primarily due to the significant changes in inflation, GDP, and the Consumer Price Index (CPI) since the implementation of the Seventh Pay Commission recommendations in 2016. Currently, the dearness allowance (DA) of central government employees has increased by more than 50 percent. Consequently, it was necessary to re-evaluate their basic pay, allowances, and pension structure in line with the current economic situation and inflationary pressures. The Eighth Pay Commission aims to ensure that the income and standard of living of government employees are in line with the economic realities of the country, ensuring stability and a dignified life. The Commission will not only revise salaries but also review key allowances such as Dearness Allowance, House Rent Allowance, and Transport Allowance. It will also make recommendations on a new pension structure, taking into account the needs of pensioners. The MTA Speaks: Political turmoil erupts again in Bihar; Who will be the next Chief Minister? 18 months tenure The Commission's tenure will typically be 18 months. During this period, it will consult with various ministries across the country, employee organizations, the Finance Ministry, the Defense Ministry, and the Cabinet Secretariat. Employees' concerns and demands will be addressed through direct dialogue. The Commission's secretariat will function under the Ministry of Finance, and the report will be submitted to the Cabinet. Upon receiving the report, the Finance Ministry and the Cabinet Secretariat will review it. The Cabinet, chaired by the Prime Minister, will then approve the recommendations. Typically, implementing Pay Commission recommendations places significant financial pressure on the government. For example, implementing the Seventh Pay Commission's recommendations imposed an additional burden of approximately ₹1.02 lakh crore annually on the central government. This burden may increase further after the Eighth Commission. But it is also true that implementing Pay Commission recommendations brings a new impetus to consumption, the market, and the economy. The increased purchasing power of government employees boosts market demand, which in turn improves GDP and economic flow. How will this benefit employees? Employees want the minimum wage, which was fixed at ₹18,000 per month in the Seventh Pay Commission, to be increased to ₹26,000 to ₹30,000. Additionally, the pay level of each grade is expected to increase by an average of 20 to 25 percent through the update of the Pay Matrix. There are also demands for restructuring of DA and HRA rates.