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News: The Union Government has announced the constitution of the 8th Pay Commission.
About Pay Commission
- A Pay Commission decides the salary and compensation of Central government employees and allowances of pensioners.
- It is set up by the Department of Expenditure, Union Ministry of Finance.
- It is generally set up every 10 years by the central government.
- The commission recommends salary structure and formulas for revising dearness allowance and dearness relief for central government employees and pensioners to offset the impact of inflation.
- These recommendations are not binding on the central government.
- It consults with central and state governments, along with other stakeholders, before recommending salary structures, benefits, and allowances for government employees.
- Seven pay commissions have been set up since 1947.
- The last one was constituted in 2014 and implemented in 2016.
