Over 1 crore central government employees and pensioners are eagerly awaiting the appointment of the chairman and two members for the 8th Central Pay Commission (CPC), which the Centre announced last month. The government is expected to announce the names soon.

 

In the meantime, everyone is closely watching the Terms of Reference (ToR), which still need to be finalized and are likely to be completed by April.

 

In response to a letter from the Department of Personnel & Training (DoPT), the National Council – Joint Consultative Machinery (NC-JCM) Staff Side has submitted their proposed ToR for the upcoming pay panel.

 

Shiva Gopal Mishra, Secretary of the NC-JCM (Staff Side), previously emphasized the need for a Standing Committee Meeting to discuss the details before finalizing the ToR. Among various proposals, the suggested ToR aims to revise pay structures, allowances, and retirement benefits for different groups of central government employees. It also includes requests like restoring the commuted portion of pension after 12 years instead of the current 15 years and implementing recommendations from the Parliamentary Standing Committee to increase pensions every 5 years.

 

The NC-JCM Staff Side met with the DoPT Secretary on February 12, 2025, to discuss the ToR.

 

The key points in the proposed ToR are:

 

Restructuring pay and allowances:

The ToR suggests reviewing the pay structure for all types of central government employees, including All India Services, Defence Forces, Para-Military Forces, Postal Employees (Gramin Dak Sevaks), and personnel from Union Territories. It also aims to merge non-viable pay scales to improve career progression.

 

The ToR from the Staff Side focuses on addressing issues in the MACP (Modified Assured Career Progression) Scheme and advocating for at least five promotions during service.

 

Minimum Wage & National Pay Policy

The ToR is requesting the panel to determine a fair and respectful minimum wage using the Aykroyd formula.

 

Retirement Benefits & Pension Reforms

The Staff Side of NC-JCM is aiming to update the terms of reference (ToR) to improve pension, gratuity, and family pension benefits. They’re advocating for the return of the defined pension scheme (CCS Pension Rules 1972) for anyone who started working after January 1, 2004. Plus, they want to change the rules so that the commuted part of pensions can be restored after 12 years instead of the current 15, and they’re also supporting the Parliamentary Standing Committee’s suggestion to bump up pensions every five years.

 

Medical & Welfare Benefits

Another key focus in the ToR is enhancing CGHS (Central Government Health Scheme) services. The goal is to make sure that both employees and pensioners, including those from the postal service, can access hassle-free and cashless medical care.