Prelims: Current events of national; and international importance | Polity & Governance
Why in news?
The Union Cabinet, chaired by the Prime Minister has approved the Terms of Reference of 8th Central Pay Commission.
Pay Commission –It is the temporary body, which constituted periodically for every 10 years by the Central Government.
Purpose – To examine and recommend changes into various issues of emoluments structure, retirement benefits and other service conditions of Central Government employees.
Under the –Department of Expenditure, Ministry of Finance.
Composition – 1 Chairperson; 1 Part time Member & 1 Member-Secretary.
Tenure – It will make its recommendations within 18 months of the date of its constitution.
Key aspects to be considered –
Economic conditions in the country and the need for fiscal prudence.
Need to ensure that adequate resources are available for developmental expenditure and welfare measures.
Unfunded cost of non-contributory pension schemes.
The likely impact of the recommendations on the finances of the State Governments which usually adopt the recommendations with some modifications; and
The prevailing emolument structure, benefits and working conditions available to employees of Central Public Sector Undertakings and private sector.
Historical context –Since 1947, the Indian government has established 7 Pay Commissions.
7th Pay Commission (2016-2026) –Under the chairmanship of Justice Ashok Kumar Mathur.
It recommended a 23.55% increase in pay, allowances and pension, which led to an additional annual outgo of Rs 1.02 lakh crore for the Central government.
Minimum Pay – Rs.18,000 per month
Maximum Pay: Rs. 2,50,000 per month (for Cabinet Secretary)
8th Central Pay Commission –
Headed by – Justice Ranjana Prakash Desai, a former Supreme Court judge & chairperson of the Press Council of India.
Member (Part-Time) – Pulak Ghosh, Professor IIM Bangalore
