8th Pay Commission: Expert warns of ₹9 lakh cr fiscal strain; Pension included

• The 8th Pay Commission has been constituted with approved Terms of Reference (TOR), and its recommendations are expected to take 2-3 years for full implementation.
• Economists warn that implementing the 8th Pay Commission could cause significant financial strain on central and state governments.
• Estimated expenditure on salaries and pensions could exceed Rs 4 lakh crore, potentially reaching Rs 9 lakh crore with arrears, impacting public finances.
• The Finance Ministry clarified that the 8th Pay Commission will recommend on pay, allowances, and pension, addressing concerns from employee associations.
• The government currently has no proposal to merge Dearness Allowance (DA) or Dearness Relief (DR) with basic salary.

Why It Matters: 8th Pay Commission threatens massive financial strain on government finances.