8th Pay Commission: There is another good news for central govt employees. After a long wait, the central government has finally made a significant move regarding the 8th Central Pay Commission. On November 3, the Modi government released an official notification via the Finance Ministry, announcing the establishment of the 8th Pay Commission. This notification clearly details the commission’s structure, its terms of reference (ToR), and the timeline for submitting its report.
Composition of the Commission
According to the notification from the government:
– Chairman: Justice (Retd.) Ranjan Desai
– Member: Prof. Pulak Ghosh
– Member Secretary: Pankaj Jain
The Commission will be based in New Delhi and is expected to present its recommendations to the central government within 18 months. However, if needed, the Commission can also provide an interim report to offer initial relief to employees.
Which employees will benefit?
The pay and allowances under the 8th Pay Commission will be assessed for the following groups:
– Industrial and non-industrial employees of the Central Government
– Officers of All India Services
– Personnel of the Armed Forces
– Employees of Union Territories
– Employees of the Indian Audit and Accounts Department
Members of regulatory bodies set up by Parliament (excluding the Reserve Bank)
– Officers and employees of the Supreme Court and High Courts (under UTs)
– Judicial officers of Union Territories
The scope of the Commission
The 8th Pay Commission’s scope goes beyond just salary increases; it will also provide recommendations on various financial matters such as allowances, bonuses, gratuity, and Performance Linked Incentive (PLI).
1. Salary, allowances, and other benefits
The Commission will suggest conditions that justify the revision of current salaries, allowances, and other benefits, whether in cash or kind. Its goal is to make government jobs appealing to skilled youth and to improve efficiency and accountability in the workplace.
2. Bonus and Performance Based Incentives (PLI)
The Commission will review the existing bonus system and may, if necessary, recommend formulation of a new performance linked incentive scheme to specifically reward employees performing outstanding work.
3. Restructuring of allowances
The Commission will evaluate the number and relevance of various allowances currently being given and recommend their restructuring.
4. Gratuity and Pension Reforms
The Commission will review the DCRG (Death-cum-Retirement Gratuity) for employees covered by the NPS or UPS. It will also recommend improvements to gratuity and pensions for employees not covered by the NPS.