The Union Cabinet on Tuesday approved the terms of reference for the 8th Central Pay Commission. The 8th Central Pay Commission will be a temporary body consisting of a Chairman, a Member (part-time), and a Member-Secretary. The Commission will submit its recommendations within 18 months from its formation.
What will happen next
C. Srikumar, member of the Joint Consultative Machinery for Central Government Employees (JCM) of the National Council (Staff Side) and general secretary of the All India Defence Employees Federation (AIDEF), stated that the formation of the Eighth Pay Commission has been delayed by a year. The Commission is required to submit its recommendations within 18 months. This means that it is unlikely that the Eighth Pay Commission recommendations will be implemented before Diwali 2027. The government has not yet provided details of its terms of reference. The government is silent on the restoration of the old pension scheme. The OPS is not even mentioned in the formation of the Eighth Pay Commission. There is uncertainty about whether old pensioners will receive the benefits of the Pay Commission.
DA to add with salary?
According to the employee leader, much hinges on the Eighth Pay Commission’s “Terms of Reference.” Clearer picture is expected within a week. In 2014, the then Dr. Manmohan Singh government announced the formation of the Seventh Pay Commission. Its recommendations were implemented in 2016. According to this, the Eighth Pay Commission should have been formed in 2024. The government has now appointed the Commission’s Chairman and members. An office will be allotted for the Commission’s work in a few days.
Once work begins, the Commission will solicit memorandums. AIDEF will now strongly press the Eighth Pay Commission for 50% dearness allowance integration into basic pay, interim relief, withdrawal of the National Pension System (NPS), and restoration of the OPS, even though these are not included in the official terms of reference. Srikumar said, “We will prepare a detailed memorandum and will strongly present it to the Eighth Pay Commission.”
SB Yadav, general secretary of the Confederation of Central Government Employees and Workers, a central employees’ organization, said, “Currently, the DA rate is 58 percent. It’s possible that the DA graph will reach 60 percent or more on January 1st. In such a situation, the government should merge 50 percent of the DA into the basic salary. Interim relief is also necessary for employees and pensioners.”
It’s possible that the Eighth Pay Commission’s recommendations will be implemented by the end of 2027, or even longer. The reason is that after 18 months, when the Commission submits its recommendations, they are sent to a Group of Ministers. Expert opinions are also sought. All previous Pay Commissions have sought some extension to submit their reports. If this Commission also seeks an extension, the wait for the benefits of the Pay Commission could extend to two years.
