8th Pay Commission: Will the old formula of dearness allowance change? Defense employees put forward 18 big demands

8th Pay Commission : New Delhi — Even before the formation of the 8th Pay Commission of the Central Government, the employees have unveiled a huge bundle of their demands. All India Defense Employees Federation (AIDEF) has made it clear in response to the Commission’s questionnaire that now the calculation of Dearness Allowance (DA) on the old pattern will not be accepted. Employees argue that the current system is failing to reduce the burden of real inflation falling on their pockets.

8th Pay Commission: Will the old formula of dearness allowance change? Defense employees put forward 18 big demands

Question on AICPI index: ‘Market prices and government figures are different’

Currently, the DA of central government employees is decided on the basis of 12 month average of AICPI-IW (Consumer Price Index for Industrial Workers). The Defense Employees Organization claims that the prices of many items in the ‘basket’ of this index are calculated at rationed or subsidized rates.

In reality, workers buy goods from the open market where prices are much higher than government figures. The organization has suggested that the new index should be based on actual retail prices or rates of government co-operative stores.

Major demands placed before the Pay Commission

• 6% increment: At present, 3% increment is given annually, there is a demand to double it.
• Pay Ratio: The difference between the highest and lowest salary in the department 1:10 Do not exceed.
• Agniveer Yojana: Proposal to abolish fixed term recruitment and convert it into regular service.
• Pension Security: Withdrawal of the Old Pension Scheme (OPS) for the Armed Forces and other departments.

What do experts say?

“The current DA calculation is not keeping pace with actual inflation. If the basis of calculation changes in the 8th Pay Commission, there will be a huge increase in the take-home salary of the employees.”
— Financial Analyst, Delhi

Way forward: Will the government accept these conditions?

If the government accepts these demands of AIDEF, it will be the biggest wage reform in the last three decades. Especially the 6% annual increment and the revised DA formula will have a big impact on the government exchequer, but it will increase the purchasing power of lakhs of employees. At present, all eyes are on the next step of the Finance Ministry whether it includes these reforms in the framework of the Eighth Pay Commission or not.