Updates and Hope
On 22nd July 2025, during the Rajya Sabha session, Unstarred Question No. 223 was raised by Shri Bhubaneswar Kalita, seeking details from the Ministry of Finance on the initiation and terms of reference (ToR) for the 8th Central Pay Commission (CPC). The question addressed whether the Government had received suggestions from stakeholders, especially the National Council (Staff Side), Joint Consultative Machinery (NC-JCM), and whether those were being considered.
Government’s Official Response
Answered By:
Shri Pankaj Chaudhary, Minister of State in the Ministry of Finance
Key Points:
- Yes, the Government has received suggestions from the NC-JCM regarding the framing of the Terms of Reference for the 8th CPC.
- Inputs have been sought from major stakeholders, including:
- Ministry of Defence
- Ministry of Home Affairs
- Department of Personnel & Training (DoPT)
- State Governments
A copy of NC-JCM’s suggestions was also enclosed as Annexure-I.
Highlights of NC-JCM’s Suggestions (Annexure-I)
A. Scope of the Commission
To examine pay, allowances, retirement benefits, and other facilities for:
- Central Govt. employees (industrial & non-industrial)
- All India Services personnel
- Defence and Para-Military Forces
- Grameen Dak Sevaks (Postal Department)
- Employees of Union Territories
- Indian Audit & Accounts Department
- Supreme Court officers & employees
- Members of Regulatory Bodies (excluding RBI)
- Employees of Central Govt. Autonomous Bodies and Institutions
B. Comprehensive Pay Revision
- Revise pay packages for the above categories as of 1.1.2026.
C. Living Wage & Minimum Wage Formula
- Ensure “Decent and Dignified Living Wage”
- Update Dr. Aykroyd formula based on:
- Changes in consumption over 65 years
- Increase family unit size from 3.0 to 3.6 units (based on 2019 Expert Committee)
D. Pay Structure Improvements
- Merge non-viable Pay Levels:
- Level 1 with 2, Level 3 with 4, Level 5 with 6
E. Career Progression
- Reform MACP Scheme:
- Minimum 3 promotions during service
- Promotions should follow hierarchical structure
F. Interim Relief
- Recommend Immediate Interim Relief for employees and pensioners
G. DA/DR Merger
- Consider merging a portion of Dearness Allowance/Dearness Relief with pay/pension
H. Anomaly Resolution
- Address unresolved anomalies from the 7th CPC as raised in JCM and Anomaly Committee
I. Retirement Benefits Overhaul
- Enhance:
- Pension
- DCRG (Death-cum-Retirement Gratuity)
- Family pension
- Restore commuted pension after 12 years
- Implement pension revision every 5 years
- Ensure parity between past and future retirees
J. Restoration of Old Pension Scheme
- Reinstate the Defined and Non-Contributory Pension Scheme (CCS Rules 1972/2021) for employees joined on or after 1.1.2004
K. Health Benefits & CGHS
- Implement cashless, hassle-free medical facilities
- Include postal pensioners
- Revise Fixed Medical Allowance (FMA)
L. Children’s Education Support
- Extend Children Education Allowance (CEA) and Hostel Subsidy till post-graduation
M. Advances and Loans
- Reintroduce and recommend new advances suited to current socio-economic conditions
N. Railway Employees’ Risk Allowance
- Grant Risk & Hardship Allowance to all categories of Railway staff working round the clock
O. Defence Civilian Employees
- Recognize risky work in arms, explosives, acid manufacturing & storage
- Recommend:
- Special Risk Allowance
- Insurance coverage
- Compensation package
📌 Conclusion
The Government has formally acknowledged suggestions from NC-JCM for the 8th CPC and has initiated consultations with major stakeholders. The proposed Terms of Reference reflect a comprehensive agenda including pay revision, pension reforms, risk allowances, career progression, and restoration of the old pension scheme. The expectations are high for a people-centric, welfare-oriented pay commission that addresses longstanding demands.
