Over a crore of central government employees and pensioners are on the edge of their seats waiting for the appointment of the chairman and two members for the 8th Central Pay Commission (CPC). The government is expected to reveal the names soon, but everyone’s focus is on the Terms of Reference (ToR), which still needs to be finalized.
Reports suggest that the ToR could be wrapped up by April. In response to a letter from the Department of Personnel and Training (DoPT), the National Council – Joint Consultative Machinery (NC-JCM) Staff Side has put forward their proposed ToR for the upcoming 8th Pay Commission.
NC-JCM Secretary Shiv (Staff Side) Gopal Mishra emphasized the importance of holding a standing committee meeting to go over the details before the ToR is finalized.
According to a report from Financial Express, the letter includes suggestions to revise salary structures, allowances, and retirement benefits for various groups of central government employees. It also mentions demands like restoring the commuted portion of pensions after 12 years instead of 15 and implementing recommendations from the Parliamentary Standing Committee to increase pensions every 5 years.
The ToR aims to review the pay structure for all types of central government employees, including All India Services, defense forces, paramilitary forces, postal workers (gramin dak sevaks), and Union Territories. It also calls for merging non-viable pay scales to enhance career progression.
Minimum Wage and National Pay Salary
The Terms of Reference (ToR) aims for the panel to establish a fair and respectable minimum wage, guided by the Ackroyd formula and the suggestions from the 15th Indian Labour Conference. It emphasizes the importance of considering shifts in living costs and family spending habits when creating the wage framework.
Dearness Allowance (DA) and Interim Relief
The proposal suggests combining Dearness Allowance with basic salary and pensions to enhance financial stability for both employees and retirees. Additionally, the ToR advocates for interim relief for central government workers until the 8th Central Pay Commission recommendations are put into effect.
Retirement Benefits and Pension Reforms
The employee representatives in the NC-JCM have called for a review of pension, gratuity, and family pension benefits within the ToR. They also propose reinstating the defined pension scheme (CCS Pension Rules 1972) for those hired after January 1, 2004.
The ToR further recommends adopting the Parliamentary Standing Committee’s suggestions to restore the commuted portion of pensions after 12 years instead of the current 15 years and to increase pensions every five years.
Medical and Welfare Benefits
A key aspect of the ToR is the call for enhancements to the Central Government Health Scheme (CGHS) to provide cashless and seamless medical services for employees and pensioners, including those receiving postal pensions.
Health and Welfare Benefits
The ToR emphasizes the need for improvements in CGHS facilities to ensure that employees and pensioners, including postal pensioners, receive cashless and efficient medical services. It also suggests raising the child education allowance and hostel subsidy to cover up to the postgraduate level.