8th Pay Commission: The central government has said that it received suggestions from the Staff Side of the National Council of Joint Consultative Machinery (NC-JCM) for framing the terms of reference (ToR) for the 8th Central Pay Commission.
The NC-JCM is a platform for dialogue between the government and its employees, specifically concerning matters of common interest and employee welfare.
This has come in response to a query posed by one Rajya Sabha member, Bhubaneswar Kalita. The member sought to know from the government about specific suggestions from the Staff Side of the NC-JCM for the 8th Pay Panel ToR. He also asked the government if these suggestions are being considered by the government or not.
Govt’s response to 8th Pay Panel ToR query
In his reply to the queries in Parliament, Minister of State in the Ministry of Finance Pankaj Chaudhary admitted that the government has received suggestions from the Staff Side of NC-JCM, as part of stakeholder consultation.
Answering another question around the consultation process for the 8th Pay Panel ToR, the minister said inputs have been sought from major stakeholders, including Ministry of Defence, Ministry of Home Affairs, Department of Personnel & Training and from states.
When did govt receive ToR suggestions from Staff Side NC-JCM?
The NC-JCM, in response to a letter from the Department of Personnel & Training (DoPT), had submitted the proposed ToR for the upcoming 8th Central Pay Commission (CPC) in February this year, within a month of the announcement of the pay panel by the Modi government.
There were as many as 15 major recommendations the Staff Side of the NC-JCM shared with the government. The ToR proposal by the NC-JCM gave details of which categories of employees would be covered for benefits under the 8th Pay Commission.
1. Broad coverage of employee categories
The NC-JCM proposed that the 8th Pay Commission cover a wide range of employees including Central Government (industrial and non-industrial), All India Services, Defence and Paramilitary Forces, Grameen Dak Sewaks, Union Territory staff, Audit and Supreme Court employees, Regulatory body staff (excluding RBI), and Autonomous Institutions.
2. Revised pay package as of 1.1.2026
It recommended that the Commission work out a comprehensive revised pay structure for all covered employees, effective from January 1, 2026.
3. Living wage based on modern needs
The NC-JCM urged the Commission to set the minimum wage ensuring a decent and dignified standard of living, revising the 1957 Aykroyd formula and using 3.6 consumption units per family, in line with 2019 Labour Ministry recommendations.
4. Merger of lower pay levels
The Council suggested merging overlapping or non-viable pay levels—like Level 1 with 2, 3 with 4, and 5 with 6—for better rationalisation of the pay matrix.
5. Reform in MACP structure
It called for fixing anomalies in the Modified Assured Career Progression (MACP) scheme, ensuring at least three promotions in a clearly defined hierarchy.
6. Immediate interim relief
An interim relief for employees and pensioners should be provided without delay, as per the Council’s demand.
7. DA and DR merger with pay/pension
The Council recommended merging a suitable percentage of Dearness Allowance (DA) and Dearness Relief (DR) with the basic pay and pension.
8. Resolve 7th CPC anomalies
It asked the Commission to address unresolved anomalies from the 7th Pay Commission raised in Anomaly and JCM meetings.
9. Improved retirement benefits
Suggestions included better pension terms, quicker restoration of commuted pension (after 12 years), and parity across past and future pensioners, with pension reviewed every five years.
10. Restore old pension scheme
A major demand was to scrap the contributory NPS and reinstate the earlier defined benefit pension system under CCS (Pension) Rules 1972/2021.
11. CGHS and medical benefits
The Council sought implementation of Parliament Committee recommendations on CGHS, enhancing Fixed Medical Allowance (FMA) and ensuring cashless, hassle-free medical care for employees and pensioners.
12. Education allowance up to PG level
It asked for the Children Education Allowance and Hostel Subsidy to be extended till the Post-Graduate level for employees’ children.
13. Restoration and introduction of advances
The Pay Commission was urged to introduce new need-based advances and restore those discontinued previously.
14. Risk allowance for railway staff
It recommended payment of Risk and Hardship Allowance to all Indian Railway employees who work under challenging conditions 24×7.
15. Special risk allowance for defence civilians
Employees in Defence establishments working with hazardous materials like explosives and chemicals should get a separate Risk Allowance, insurance coverage, and adequate compensation.