8th Pay Commission Terms of Reference: Over 1 crore central government employees and pensioners are eagerly awaiting the appointment of the chairman and two members, as announced by the Centre last month, under the 8th Central Pay Commission (CPC). The government is expected to announce the names soon.
Meanwhile, all eyes are on the Terms of Reference (ToR), which is still to be firmed up and may be finalised by April.
In response to a letter from the Department of Personnel & Training (DoPT), the National Council – Joint Consultative Machinery (NC-JCM) Staff Side submitted the proposed ToR for the upcoming 8th pay panel.
Shiva Gopal Mishra, Secretary, NC-JCM (Staff Side), in a letter earlier, emphasised the need for a Standing Committee Meeting to deliberate on the details before finalisation of ToR. Among several proposals, the proposed ToR focuses on revising pay structures, allowances, and retirement benefits for various categories of central government employees. It also talks about demands like restoration of the commuted portion of pension after 12 years instead of 15 years and implementation of Parliamentary Standing Committee recommendations for enhancement of pension after every 5 years.
NC-JCM Staff Side met with the DoPT Secretary on February 12, 2025 to discuss the ToR.
Also read: 8th Pay Commission may begin work in April FY25-26, reveals Expenditure Secretary Manoj Govil
The key points included in the proposed ToR are:
- Pay and allowances restructuring:
The ToR proposes review of pay structure for all categories of central government employees, including All India Services, Defence Forces, Para-Military Forces, Postal Employees (Gramin Dak Sevaks), and Union Territories personnel. It also seeks merging non-viable pay scales to improve career progression.
The ToR from Staff Side focuses on addressing anomalies in the MACP (Modified Assured Career Progression) Scheme and recommend at least five promotions in service.
- Minimum Wage & National Pay Policy
The ToR wants the panel to determine a decent and dignified minimum wage based on the Aykroyd formula and the 15th Indian Labour Conference recommendations. It recommends changes in cost of living and family consumption patterns while formulating the pay structure.
- Dearness Allowance (DA) & Interim Relief
It suggests merging DA with basic pay and pension to ensure better financial security for employees and pensioners.
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