8th Pay Commission: Prime Minister Narendra Modi-led union cabinet last month approved the setting up of the 8th Central Pay Commission (CPC) to revise the salaries of nearly 50 lakh central government employees and allowances of 65 lakh pensioners. Amid the curiosity surrounding the hike and other changes, the government is yet to appoint the chairman and two members of the CPC. While the names might be announced soon, the centre of attention remains on the terms of reference (ToR) on which the CPC will work. As per reports, the ToR is likely to be finalised by April 2025.
National Council - Joint Consultative Mechanism (NC-JCM) -- the official body to resolve disputes between the central government and its employees, has already submitted the proposed ToR for the Commission with Secretary (Staff side) Shiv Gopal Mishra demanding a meeting of the standing committee to formally discuss the proposal.
Key areas of focus in the 8th Pay Commission:
Pay and Allowances restructuring
Apart from reviewing and revising the salary structure of all central government employees, reforms in the Modified Assured Career Progression (MACP) scheme have been proposed. If the prosal is passed, it could ensure at least five promotions during an employee's service period.
Dearness Allowance (DA) and Interim Relief
For a long time, there have been demands to include Dearness Allowance (DA) in the Basic Pay. Moreover, central employees are demanding interim relief till the new Pay Commission comes into effect.
Increase family units
Talking to NDTV, Mr Mishra stated that the 8th Pay Commission should determine the minimum salary while considering the consumption need of "five units" instead of three. This is because an earning worker has to undertake the responsibility of dependent parents as well, he said.
"Taking care of aged parents is an ethical, as well as legal responsibility under the Maintenance and Welfare of Parents And Senior Citizen Act 2022, and therefore, the family units should be counted as five and not three units."
Factor in modern expenses
Mr Mishra also pointed out that the Aykroyd formula, seen as a yardstick to determine minimum living wages, pertains to the 20th century and does not factor in the expenses incurred in the modern era.
"For instance, in today's age, there is a thrust on going digital. When everything is getting digitised, the Aykroyd formula does not address the expenses of internet," he said.
Also Read | Centre Approves 8th Pay Commission To Revise Salaries, Pension Allowances
How much salary hike to expect?
Currently, the salary structure for the central employees follows the recommendations of the 7th Pay Commission that came into effect in 2016. The new salaries will depend on the 'fitment factor' -- a multiplier that is applied to the current basic pay.
Reports suggest that the fitment factor could rise to 2.86, from the current 2.57, which will raise the basic pay in Level 1 from Rs 18,000 to Rs 51,480. Accordingly, at all 10 levels, employees will see a revision in salaries and pensions.
