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Govt has no plan for 8th pay commission, Read what Finance Secretary said


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The Indian government has announced that it currently has no plans to establish the eighth Pay Commission for the 5.4 million central government employees and pensioners. Finance Secretary TV Somanathan dismissed speculations and stated that there is nothing in the offing regarding the setting up of the 8th Pay Commission.

Historical Context and Political Strategies

In the past, political parties, especially in the run-up to elections, have strategically used the announcement of Pay Commissions to gain support from central government employees and armed forces personnel. The 7th Pay Commission was instituted by the Congress-led UPA government months before state and general elections. However, the BJP has taken a different approach and is focusing on reviewing the controversial new pension scheme affecting state and central government employees.

Review of the Controversial Pension Scheme

Under the existing pension scheme, employees contribute 10% of their basic salary, while the government contributes 14%, which has sparked political debates. To address this issue, the Finance Ministry has set up a committee led by Finance Secretary TV Somanathan to review the system. The committee has concluded consultations with all relevant parties, and their report is expected to be submitted shortly. The proposed changes aim to ensure that employees receive a minimum of 40 to 45% of their last salary.

Political Pressure and Upcoming Elections

As the elections draw closer, there is mounting political pressure on the Finance Ministry to announce the establishment of the 8th Pay Commission, regardless of the upcoming state poll results. The results of the state polls, expected on Sunday, are seen as a prelude to the 2024 national election, where Prime Minister Narendra Modi seeks a third consecutive term.

In summary, the Indian government has stated that it currently has no plans to establish the eighth Pay Commission for central government employees and pensioners. Instead, the government is focusing on reviewing the controversial new pension scheme. However, there is political pressure to announce the 8th Pay Commission as the elections approach.

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