8th Pay Commission: Terms of Reference Yet to be Finalized, Says Expenditure Secretary
The terms of reference (ToR) for the 8th Pay Commission are still being formulated and could take a couple of months to be finalised, according to Expenditure Secretary Manoj Govil. Speaking to *Business Today*, Govil confirmed that consultations with state governments and major ministries, including the Ministry of Defence, Ministry of Home Affairs, and the Department of Personnel and Training, have begun.
Finalisation in Progress
“We hope to finalise the terms in the next couple of months,” Govil said. He further indicated that the recommendations of the Pay Commission, while impactful for future budgets, would not influence the upcoming financial year, as the final report could take over a year to materialise.
“Even if it takes one year from, let us say, April 2025 to April 2026, the recommendations would not come by the time that we start formulating the next budget,” he explained.
Government Holds Key Meeting on Terms of Reference
The Union government recently held a significant meeting with representatives of central government employees to discuss the ToR for the 8th Pay Commission. This development is expected to impact over 49 lakh employees and nearly 65 lakh pensioners.
The meeting, chaired by the Secretary of the Department of Personnel and Training (DoPT), included members of the Staff Side of the Standing Committee of the National Council (JCM). Discussions focused on major employee demands, including salary revisions, pension enhancements, and risk allowances for defence and railway personnel.
Key Issues Discussed
According to Shiva Gopal Mishra, Secretary (Staff Side), National Council (JCM), the following key demands were raised during the meeting:
– Pension and Retirement Benefits: Employee unions demanded that the commuted portion of pensions be restored after 12 years instead of the current 15 years. They also pushed for implementing the Parliamentary Standing Committee’s recommendations for pension enhancement every five years.
– Restoration of the Old Pension Scheme: Representatives strongly advocated for reverting to the non-contributory pension scheme under the Central Civil Services (Pension) Rules, 1972, for employees recruited after January 1, 2004.
– Determination of Minimum Wage: The delegation proposed revising the calculation of minimum wages, arguing for a family unit of five members instead of three, in line with *The Maintenance and Welfare of Parents and Senior Citizen Act, 2022*.
– Children Education Allowance and Hostel Subsidy: A proposal was made to extend these benefits up to the postgraduate level to support employees’ children pursuing higher education.
– Interim Relief and Dearness Allowance Merger: The staff side urged the immediate grant of interim relief and the merger of 50% of Dearness Allowance (DA) with basic pay, a measure previously implemented by earlier Pay Commissions.
– Inclusion of More Employee Categories: They also pressed for including Gramin Dak Sevaks (postal employees) and Election Commission employees within the scope of the 8th Pay Commission.
Government’s Response and Next Steps
DoPT Secretary acknowledged the concerns raised and assured representatives that further consultations would be held before finalising the ToR. The employees’ representatives also requested that pending issues agreed upon in previous Joint Consultative Machinery (JCM) meetings should not be deferred to the Pay Commission, as this would delay implementation.
The Staff Side of the JCM is now preparing a detailed memorandum justifying each demand. A separate circular has been issued to all affiliated organisations to provide inputs before finalising submissions to the 8th Pay Commission.
Once formally constituted, the 8th Pay Commission will determine revised pay structures, benefits, allowances, and pension schemes for central government employees. The process, involving consultations with state governments and key ministries, is expected to shape salary structures for millions of government employees across the country.