8th Pay Commission News: Amid lots of deliberations among various stakeholders of the 8th Central Pay Commission (CPC), curiosity concerning impending pay hikes and other changes is growing among more than 1 crore central government employees and pensioners across the country.

Last month, the central government announced its formation, but the appointment of its chairman and two members is yet to be done. It is expected that the names for these important posts will be announced soon. But the real question is, on what terms of reference (Terms of Reference – ToR) will the commission work? This is the point on which all eyes are fixed.

Current status of Terms of Reference of 8th Pay Commission

The ToR has not been finalised yet, but it is likely to be prepared by April 2025. In response to the letter sent by the Department of Personnel and Training (DoPT), the National Council – Joint Consultative Mechanism (NC-JCM) Staff Side has submitted the proposed ToR for the Commission.

NC-JCM secretary Shiv Gopal Mishra has demanded a meeting of the standing committee to formally discuss the proposal so that a final ToR can be prepared keeping in mind the concerns of the employees.

Also read: 8th Pay Commission: Employees’ 15 big demands – Interim relief, at least 5 promotions and more!

Possible key points of the 8th Pay Commission

  1. Restructuring of pay and allowances

The pay structure of all central employees will be comprehensively reviewed. This will include employees of All India Services, Defence Forces, Paramilitary Forces, Postal Department (Rural Postal Servants) and Union Territories.

It has been recommended to provide better career progression opportunities by merging non-professional pay scales.

There has been a demand for reform in the Modified Assured Career Progression (MACP) scheme so that employees can get at least five promotions.

  1. Minimum Wages and National Wage Policy

The Pay Commission will be given the responsibility to fix a fair minimum wage based on the Aykroyd formula and the recommendations of the 15th Indian Labour Conference.

It is recommended to take into account inflation, cost of living and consumer spending pattern while creating the pay structure.

  1. Dearness Allowance (DA) and Interim Relief

It is recommended to include Dearness Allowance (DA) in the Basic Pay to ensure economic security of employees and pensioners.

Interim relief for central employees has been demanded till the new Pay Commission comes into effect.

  1. Retirement Benefits and Pension Reforms

Amendments in pension, gratuity and family pension have been proposed.

A strong demand has been raised to restore the old pension scheme (CCS Pension Rules 1972) for employees recruited after 1st January 2004.

It is recommended to reduce the period of pension adjustment from 15 years to 12 years and to implement pension increment every 5 years.

  1. Medical and Welfare Benefits

Reforms in the Central Government Health Scheme (CGHS) have been demanded so that employees and pensioners can get cashless and more efficient medical services.

It has been proposed to increase the children education allowance and hostel subsidy up to postgraduate (PG) level.

Also read: 8th Pay Commission Terms of Reference: Early pension restoration, pension revision every 5 years key proposals

Composition of 8th Pay Commission

The 8th Pay Commission will have three members:

Chairman: Probably a finance expert.

The other two members: These could be administrative and economic experts.

Though the panel members are yet to be officially appointed, the central government has begun consultations with state governments and various ministries (Ministry of Defence, Ministry of Home Affairs and DoPT).

What does this mean for employees and pensioners?

The 8th Central Pay Commission will play a key role in deciding the future financial position of government employees and pensioners. Pay restructuring, hike in allowances and pension reforms will directly benefit millions of government employees and their families.

It will be interesting to see in the coming months which direction the government takes this process and what decisions are implemented. Creating a balanced and equitable pay system while protecting the interests of employees and pensioners should be the most important goal. Only time will tell if the 8th Pay Commission meets the expectations of employees or not!