Minister of State in the Ministry Of Finance has responded to questions regarding constitution of the 8th Central Pay Commission and issues related to pay, ToR.
The Union cabinet led by Prime Minister Narendra Modi on 16 January 2025 approved setting up the 8th Pay Commission to revise salaries of nearly 50 lakh central government employees and allowances of 65 lakh pensioners.
The effective date for the 8th Pay Commission recommendations has not been announced by the government.
The 8th Pay Commission conducted the data collection exercise from stakeholders to assess the pay, allowances, pensions and service conditions of the central government employees.
An illustrative comparison shows that if the annual increment were increased from the current 3 percent to 6 percent then an employee could get a significant boost in basic pay over ten years.
DA is a percentage of the basic salary of an employee that is designed to help lessen the effects of inflation on their living expenses.
Several employee unions and representative bodies representing central government employees have demanded an increase in HRA as a relief measure for employees facing high inflation.
As the work of the 8th Pay Commission is underway to address issues related to pay revision, salaries, pensions and fitment factors for central government employees, the Commission is consulting with stakeholders to finalise recommendations on pay and allowances.
In April this year, the Modi government announced a 2 percent increase in DA for central government employees and pensioners. With this revision, DA has been increased to 60 percent of basic pay now from the earlier 58 percent.
The issue regarding the grant of pay fixation benefits to those employees who are promoted after availing the benefit of MACP (DoPT) came up during49th meeting of the National Council (Joint Consultative Machinery or JCM) chaired by the Cabinet Secretary recently.
The minutes of the meeting show that the Staff Side of the National Council has raised several concerns related to promotions as well as the residency period for promotion.
The data being collected will play a crucial role in assisting the Commission’s analysis of pay, allowances, pensions and service conditions of around 50 lakh serving central government employees and approximately 69 lakh pensioners.
Central employee unions and associations focused their memoranda submissions for a higher fitment factor, a substantial increase in the minimum basic pay, multiple reports said.
Gratuity is a lump sum payment made to employees as a reward for long and continuous service. Employee unions have presented their memorandum to the 8th Pay Panel for increasing gratuity payout.
In a memorandum submitted by the NC-JCM Staff Side to the 8th Pay Commission on common service matters of central government employees and pensioners, it demanded changing a rule related to deduction of half-day casual leave (CL) due to late attendance.
8th Pay Commission: The Staff Side proposed the restoration of the commuted pension of central government pensioners after 11 years arguing the fact that the rules regarding the restoration of the commutation of pension were framed 39 years ago.
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In their memorandum to the 8th Central Pay Commission (CPC), the Staff Side of NC-JCM has proposed the inclusion of several important advances in salary for the benefit of central government employees. The Staff Side has proposed the inclusion of advanced salary for festivals, natural calamities, buying cars, computer and house building advances.
The 8th Pay Commission is expected to bring a significant increase in salaries and pensions for central government employees and pensioners. Although the government has announced the formation of the commission, the commission is yet to submit its report and make public the implementation timeline. Amid the delay, central government employees and pensioners are becoming curious about the amount of arrears they could receive when the revised pay structure is implemented and the Pay Commission comes into effect.
In April this year, the Modi government announced a 2 percent increase in DA for central government employees and pensioners. With this revision, DA has been increased to 60 percent of basic pay now from the earlier 58 percent.
As the work of the 8th Pay Commission is underway to address issues related to pay revision, salaries, pensions and fitment factors for millions of central government employees and retirees, the Commission has stepped up its consultations with employee unions, pensioner associations and government institutions to finalise recommendations on pay and allowances.
8th Pay Commission latest update: The government employee unions which have submitted memorandums to the 8th CPC are demanding an increase in minimum pay of employees and a five unit family framework consisting of employee, spouse, children and dependent parents.