8th Pay Commission: The Union Cabinet led by Prime Minister Narendra Modi has approved the establishment of the 8th Pay Commission to review the salaries of about 50 lakh central government employees and allowances of 65 lakh pensioners on January 16, 2025.
8th Pay Commission: The Union Cabinet led by Prime Minister Narendra Modi has approved the establishment of the 8th Pay Commission to review the salaries of about 50 lakh central government employees and allowances of 65 lakh pensioners on January 16, 2025. Now the National Council of Joint Consultative Machinery (JCM) Staff Side has submitted its recommendations for the Terms of Reference (TOR) for the 8th Central Pay Commission (CPC). The Staff Side of the National Council of Joint Consultative Machinery has submitted recommendations including salary structure, DA merger, increase in pension and many important for government employees and pensioners.
What is the detail
Let us tell you that the Department of Personnel and Training (DoPT) invited suggestions from the staff side of the National Council JCM to finalize the Terms of Reference (TOR) of the 8th Central Pay Commission on 23 January 2025. Shiv Gopal Mishra, Secretary, NC-JCM Staff Side, submitted a proposal outlining the details of the demands, which included 15 proposals in total. One of the key recommendations of the staff side for government employees was the merger of pay scales under 1-6 pay levels. In a letter dated 3 February 2025, the Terms of Reference – Staff Side proposals were sent to the JCA and JCM Secretary. It mentions that Level-1 should be considered to be merged with Level-2 and Level-3 with Level-4 and Level 5 with Level-6.
What will change
Under the current pay scale, the structure is from Level 1 to 18. After the 7th Pay Commission, the minimum monthly salary at level 1 was fixed at Rs 18,000, the maximum salary at level 18 was fixed at Rs 2,50,000 per month. In such a situation, if the government merges the levels from level 1 to level 6. Suppose at present the basic salary of employees at level 1 is Rs 18,000 and the salary of central employees at level 2 is Rs 19,900. If both of these are merged and the fitment factor 2.86 is applied. That is, then their salary will become 51,480. If level 3 and 4 are merged then the salary becomes Rs 72,930. At the same time, on merging level 5 and 6, the basic salary with 2.86 fitment will become Rs 1,01, 244. The purpose of the merger is to remove the anomalies in salary advancement and to form a clear salary structure.
These are also the proposals
Apart from pay scale merger, the employee side is supporting quick integration of dearness allowance (DA) and dearness relief (DR) with basic salary and pension. The proposal recommends inclusion of a specified percentage of DA/DR in the salary structure to mitigate the impact of inflation on government employees and pensioners, boost take-home salary and pension.
What happens next
The government is expected to set up a three-member 8th pay panel within this month, with a chairman heading the committee. The Pay Commission is expected to submit its findings to the government within a time frame of about 12 months. Thereafter, the government will take a decision regarding revision of pension and pay for over 1.2 crore central government employees and pensioners based on the recommendations given by this panel.
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