There may also be a major change in the pension policy, as fresh reports suggest that a major change is on the way for lakhs of retired government employees despite the delay in the actual announcement of the 8th Pay Commission. This is good news for pensioners who have been waiting for a revision in their post-retirement financial benefits.
DNP India further said that the central government is considering other ways to readjust benefits and pensions, even though the formal implementation of the 8th Pay Commission is still awaited. Since the general elections are over and policy issues have once again become the topic of discussion of the government, speculation has increased on whether the Centre will come up with interim relief or a formula-based pension hike so that the government can provide immediate relief.
Why the Delay?
The 7th Pay Commission was implemented in 2016, and as per convention, a new Pay Commission should be implemented every 10 years. No official notification has been sought regarding the formation of the 8th Pay Commission, leaving all employees and pensioners confused.
The reason for the delay is economic pressure, which has hindered inflation control measures and revenue management. However, under growing pressure from employee unions and senior citizen lobby groups, the government is considering other options for pension hikes to make up for the shortfall.
What’s on the Table?
There may be indications about a pension restructuring policy that may be linked to inflation and cost-of-living adjustments, as indicated by insiders. This will help increase pension payments at intervals without adopting a new commission.
There is also news that Dearness Relief (DR) may increase dramatically in the next few months, and this will help pensioners manage the rising cost of living.
Scholars also believe that these interim steps could act as a transitional phase until the formation of the 8th Pay Commission, which may come into effect, with all the delays, in 2026.
Looking Ahead
The government has yet to affirm the date on which the commission will be rolled out, but the anticipation is increasing further. At this moment, the glimmer of good news to pensioners has already boosted the moods of the retired workers and their families.
