GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF EXPENDITURE

RAJYA SABHA
UNSTARRED QUESTION No. 1175
TO BE ANSWERED ON TUESDAY, FEBRUARY 10, 2026/ 21 MAGHA, 1947 (SAKA)

8TH CENTRAL PAY COMMISSION

1175.

SHRI GHANSHYAM TIWARI and 14 others

Will the Minister of Finance be pleased to state:

(a) the status of the 8th Central Pay Commission (CPC) constituted to review pay, allowances, pensions and service conditions of Central Government employees;

(b) the key areas under review by the CPC, including proposed changes to pay scales, allowances and pension structures;

(c) the timeline proposed for submission of the CPC report and Government’s roadmap for implementation of its recommendations; and

(d) whether the Ministry has assessed the fiscal impact of implementing CPC recommendations on the Union Budget, if so, the details thereof?

ANSWER

MINISTER OF STATE IN THE MINISTRY OF FINANCE
(SHRI PANKAJ CHAUDHARY)

(a) to (c): The Government has notified Resolution dated 03.11.2025 for constitution of Eighth Central Pay Commission (CPC) to make its recommendations on the various issues viz. Pay, Allowances, Pension, etc. of the Central Government employees within 18 months of its constitution

d): The fiscal impact of 8th CPC will be known once the recommendations are made by 8th CPC and are accepted by the Government.

भारत सरकार
वित्त मंत्रालय
व्यय विभाग

राज्य सभा
लिखित प्रश्न संख्या – 1175
मंगलवार 70 फरवरी; 2026/21 माघ, 1947 (शक)

8वां केंद्रीय वेतन आयोग

1175.

श्री घनश्याम तिवाड़ी एवं 14 अन्‍य:

क्या कित्त मंत्री यह बताने की कृपा करेंगे किः

(क) केंद्रीय सरकार के कर्मचारियों के वेतन, भत्तों, पेंशन तथा सेवा शर्तों की समीक्षा हेतु गठित आठवें केंद्रीय वेतन आयोग (सीपीसी) की वर्तमान स्थिति क्‍या है;

(ख) वेतन आयोग द्वारा वेतनमान, भत्तों और पेंशन संरचना में प्रस्तावित परिवर्तन सहित समीक्षा के अंतर्गत लिए जा रहे प्रमुख क्षेत्र कौन-से हैं;

(ग) वेतन आयोग की रिपोर्ट प्रस्तुत किए जाने की प्रस्तावित समय-सीमा क्‍या है और उसकी सिफारिशों के कार्यान्वयन के लिए सरकार का रोडमैप क्या है; और

(घ) क्‍या मंत्रालय ने वेतन आयोग की सिफारिशों के लागू होने से केंद्रीय बजट पर पड़ने वाले वित्तीय प्रभाव का कोई आकलन किया है, और यदि हां, तो तत्संबंधी ब्यौरा क्या है?

उत्तर

वित्त राज्य मंत्री
(श्री पंकज चौधरी)

(क) से (ग): सरकार ने आठवें केंद्रीय वेतन आयोग (सीपीसी) के गठन हेतु दिनांक 03.11.2025 को संकल्प अधिसूचित किया है, जो इसके गठन के 18 महीने के भीतर केन्द्र सरकार के कर्मचारियों के विभिन्‍न मामलों जैसे वेतन, भत्ते, पेंशन आदि पर अपनी सिफारिशें देगा।

(घ): 8वें केंद्रीय वेतन आयोग (सीपीसी) द्वारा सिफारिशें किए जाने और सरकार द्वारा उन्हें स्वीकृत किए जाने पर 8वें केंद्रीय वेतन आयोग (सीपीसी) के राजकोषीय प्रभाव का पता चलेगा।

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8th CPC

The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi, today approved the Terms of Reference of 8th Central Pay Commission.

The 8th Central Pay Commission will be a temporary body. The Commission will comprise of one Chairperson; One Member (Part Time) and one Member-Secretary.  It will make its recommendations within 18 months of the date of its constitution. It may consider, if necessary, sending interim reports on any of the matters as and when the recommendations are finalized. While making the recommendations the Commission will keep in view the followings:

i.   The economic conditions in the country and the need for fiscal prudence;

ii. The need to ensure that adequate resources are available for developmental expenditure and welfare measures;

iii. The unfunded cost of non-contributory pension schemes;

iv. The likely impact of the recommendations on the finances of the State Governments which usually adopt the recommendations with some modifications; and

v. The prevailing emolument structure, benefits and working conditions available to employees of Central Public Sector Undertakings and private sector.

Background:

The Central Pay Commissions are periodically constituted to go into various issues of emoluments structure, retirement benefits and other service conditions of Central Government employees and to make recommendations on the changes required thereon. Usually, the recommendations of the pay commissions are implemented after a gap of every ten years. Going by this trend, the effect of the 8th Central Pay Commission recommendations would normally be expected from 01.01.2026.

The Government had announced formation of the 8th Central Pay Commission in January, 2025 to examine and recommend changes in the Salaries and other benefits of Central Government employees.

– PIB

Key Highlights:

• Approval: The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the Terms of Reference (ToR) for the 8th Central Pay Commission (CPC).
• Nature: The 8th CPC will be a temporary body.
• Composition:
  • 1 Chairperson
  • 1 Member (Part-Time)
  • 1 Member-Secretary
• Timeline: The Commission will submit its recommendations within 18 months of constitution.
• Interim Reports: It may submit interim reports on specific matters as recommendations are finalized.

Key Considerations:
i. Current economic conditions and the need for fiscal prudence.
ii. Ensuring resources for developmental and welfare expenditure.
iii. Addressing unfunded non-contributory pension costs.
iv. Financial impact on State Governments.
v. Comparison with Central PSUs and private sector pay structures.

Background:

Central Pay Commissions are set up every 10 years to revise emoluments, pensions, and service conditions.

The 8th CPC was announced in January 2025.

Its recommendations are expected to take effect from January 1, 2026.

The post 8th CPC – Cabinet approves Terms of Reference of 8th Central Pay Commission appeared first on CENTRAL GOVERNMENT EMPLOYEES NEWS.

In a significant development for lakhs of retired central government employees, the upcoming 8th Central Pay Commission (CPC) is expected to consider the reduction of the pension commutation period from 15 years to 12 years. This long-standing demand is now proposed to be included in the Terms of Reference (ToR) for the 8th CPC.

This potential change was discussed during the 34th meeting of the Standing Committee of Voluntary Agencies (SCOVA), held on March 11, 2025, where key pension-related issues were reviewed. The proposal, if approved, would benefit central government pensioners by restoring the commuted portion of the pension three years earlier than the current 15-year timeline.

🔍 What Is Pension Commutation?

Pension commutation allows pensioners to receive a lump sum amount by surrendering a part of their monthly pension. Currently, the commuted amount is recovered over a period of 15 years, after which the full monthly pension is restored. With the proposed 12-year recovery period, pensioners could begin receiving their full pension three years sooner, improving their financial stability during retirement.

🏛️ Highlights from the SCOVA 34th Meeting

• Date: March 11, 2025
• Platform: SCOVA – the official forum addressing pensioners’ grievances
• Agenda: Inclusion of pension commutation restoration (from 15 to 12 years) in the 8th CPC’s ToR
• Outcome: The Department of Pensions and Pensioners’ Welfare has agreed to forward this proposal for inclusion

📌 Expected Benefits for Pensioners

• Early restoration of full pension
• Improved financial security for senior citizens
• Alignment with past pensioners’ representations
• A positive precedent for future pension reforms

📣 Conclusion

This move by the 8th CPC, if finalized, would be a major relief for pensioners who have long advocated for earlier restoration of their full pension. With healthcare and living expenses on the rise, the 12-year commutation restoration would offer greater financial comfort and respect the needs of India’s retired workforce.

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8th Central Pay Commission Latest News

8th CPC Vacancy – To fill up the 35 posts in 8th Central Pay Commission on deputation basis.

F.No, A-11011/1/2023-Ad.1
Government of India
Ministry of Finance
Department of Expenditure
Admn. | Section

North Block, New Delhi,
Dated: 17th April, 2025

VACANCY CIRCULAR

Subject:- Filling up of posts in 8th Central Pay Commission on deputation basis – reg.

It is proposed to fill up the 35 posts in 8th Central Pay Commission on deputation basis. These posts are to be staffed for the period from the date of constitution of the 8th CPC till the closure of the Commission.

2. The appointments to the 8th CPC will be governed by the regular norms prescribed by DoPT from time to time. It is requested to circulate this requirement among the relevant officials and personnel in your organization. The post-wise eligibility criteria are enclosed.
3. Nominations/ applications, in the attached proforma along with the supporting documents i.e. APAR of five years, Vigilance Clerance etc. should be sent to this Department to the following address through proper channel:

Sh. Ranjit Kumar Jha, Under Secretary (Admn.1),
Department of Expenditure, Ministry of Finance,
Room No. 225-E, North Block,

New Delhi-110001 (email: ranjitk.jha@nic.in)

5. This is an open-ended circular, meaning that applications will be considered on a continuous basis until all vacancies are filled. Therefore, it is requested to submit the duly filled/ verified applications at the earliest.

(Avinash K. Nilankar)

Director (Admin.)
Tel: 23092689

Eligibility conditions for the post of Sr. System Analyst (Level- 11 of Pay Matrix) in 8th Central Pay Commission.

Eligibility conditions for the post of Desk Officers/ Section Officer/ Equivalent
(Level-08/10 of Pay Matrix) in 8th Central Pay Commission.

Eligibility conditions for the post of Assistant Section Officer (Level-07) of Pay
Matrix) in 8th Central Pay Commission.

Eligibility conditions for the post of PS/PPS/Sr. PPS (Level-08/10/11/12 of Pay
Matrix) in 8th Central Pay Commission

Eligibility conditions for the post of PA/Stenographer (Level-04/07 of Pay
Matrix) in 8th Central Pay Commission.

Eligibility conditions for the post of Cashier/SSA (Level-04 of Pay Matrix) in 8th
Central Pay Commission.

Eligibility conditions for the post of Driver (Level-02 of Pay Matrix) in 8th Central Pay Commission.

Eligibility conditions for the post of MTS (Level- 01 of pay matrix) in 8th Pay Commission.

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Yes, the Government of India has approved the formation of the 8th Central Pay Commission (CPC). Minister of State for Finance, Shri Pankaj Chaudhary, confirmed this decision in a written reply to the Rajya Sabha on March 25, 2025.

The 8th CPC is expected to benefit approximately 36.57 lakh Central Government civilian employees (as of March 1, 2025) and about 33.91 lakh pensioners/family pensioners (as of December 31, 2024). Defense personnel and pensioners will also be included.

While the government has announced that the 8th Pay Commission will be effective from January 1, 2026, the commission itself is likely to be constituted much earlier to allow sufficient time for deliberations and recommendations. Historical patterns suggest that pay commissions are typically formed within 2 to 5 months after their announcement.

As of now, the government has not specified the exact timeline for constituting the commission or the appointment of its chairman and members. Further details regarding the commission’s terms of reference and implementation schedule are awaited.

GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF EXPENDITURE
RAJYA SABHA

UNSTARRED QUESTION No. 2776
TO BE ANSWERED ON TUESDAY, MARCH 25, 2025
04 CHAITRA, 1947 (SAKA)

“APPROVAL OF 8th CENTRAL PAY COMMISSION”

2776: SHRI SHAMBHU SHARAN PATEL:
SHRI MADAN RATHORE:
SMT. KIRAN CHOUDHRY:

Will the Minister of Finance be pleased to state:

(a) whether the 8th Central Pay Commission (CPC) has been approved;

(b) if so, the details thereof; and

(c) the estimated number of Central Government employees and pensioners that would benefit from this at the level of the 8th CPC which would boost consumption in the economy?

ANSWER

MINISTER OF STATE IN THE MINISTRY OF FINANCE
(SHRI PANKAJ CHAUDHARY)

(a) & (b): It has been decided by the Government to constitute the 8th Central Pay Commission (CPC).

(c): The approximate number of Central Government civilian employees and pensioners/ family pensioners is 36.57 lakh (as on 01.03.2025) and 33.91 lakh (as on 31.12.2024) respectively. Defence Personnel and Pensioners will also be benefitted

The post Whether the 8th Central Pay Commission (8th CPC) has been approved? appeared first on CENTRAL GOVERNMENT EMPLOYEES NEWS.

Shiva Gopal Mishra
Secretary

Ph.: 23382286
National Council (Staff Side)
Joint Consultative Machinery
13-C, Ferozshah Road, New Delhi – 110001
E-Mail : nc.jcm.np@gmail.com

No.NC-JCM-2025/8th CPC

February 3, 2025

The Dy. Secretary -JCA,
&
Member Secretary – JCM,
Department of Personnel & Training
North Block,
New Delhi

Dear Sir,

In reference to your office letter No. 6/1/2025-JCA dated 23/01/2025, we are forwarding herewith Terms of References of 8th CPC from Staff Side of the National Council (JCM),

It is requested that Standing Committee Meeting of the NC-JCM should also be called for discussions the Terms of Reference of the 8th CPC in details before finalising it.

Yours faithfully,

(Shiva Gopal Mishra)
Secretary

Term of Reference for 8th CPC to be forwarded by Secretary Staff Side NC (JCM)

A. To examine the existing structure of pay, Allowances and other benefits /facilities, retirement benefits like pension / gratuity and other terminals benefits etc. to the following categories of employees:-

1. Central Government employees-industrial and non industrial.
2. Personnel belonging to All India services.
3. Personnel belonging to the Defence Forces and Para Military Forces.
4. Personnel called as Grameen Dak Sewaks belonging to the Postal Department.
5. Personnel of Union Territories
6. Officers and employees of the Indian Audit and Accounts Department.
7. Officers and employees of the Supreme Court.
8. Members of Regulatory bodies (excluding RBI) set up under Act of Parliament.
9. Employees of Central Government Autonomous Bodies and Institutions

B. To work out the comprehensive revised pay packet for the categories of Central Government Employees mentioned in (A)above as on 1.1.2026.

C. The Commission will determine the Pay structure, benefits, facilities, retirement benefits, welfare matters etc taking in to account to provide the minimum wage as a “ Decent and dignified Living Wage” with reference to the recommendation of the 15 Indian Labour Conference (1957 with modifications in the Dr. Aykroyd formula considering the developments and life requirements which has undergone changes in last 65 years and also the various Judgments of Hon’ble Supreme Court Judgments on fixing the minimum wages as on 1.1.2026. The Commission also consider to increase the consumption units from 03 family units to 3.6 family units as recommended by an expert committee constituted by Ministry of Labour and Employment to determine the National Minimum Wage Policy in the year 2019.

D. The 8th CPC should consider the merger of non-viable Pay scales such as Level – 1 with Level – 2 and Level- 3 with Level – 4 and Level – 5 with Level -6.

E. To consider the existing anomalies in the MACP scheme and to recommend minimum 5 promotion in service with very defined Hierarchical Structure and MACP in the Promotional Hierarchy.

F. To determine the Interim Relief to be sanctioned immediately to the Central Government employees and pensioners mentioned in (A) above.

G. To determine the percentage of Dearness Allowance / Dearness Relief immediately to be merged with Pay & Pension.

H. To settle the various 7th CPC Anomalies which the Staff Side raised in the Anomaly Committee meetings and JCM meetings.

I. To Workout the improvements needed to the existing retirement benefits like pension, Death cum retirement Gratuity, Family pension, restoration of commuted portion of pension after 12 years, implementation of Parliamentary Standing Committee recommendations for enhancement of pension after every 5 years, parity amongst past, future pensioners

J. To review and to restore the defined and non contributory Pension Scheme Under CCS (Pension Rules) 1972 (Now 2021) to the Central Government employees recruited on or after 1/1/2004.

K. To recommend the parliamentary Standing Committee recommendation on CGHS related matter FMA and to recommend methods for providing cashless / hassle-free Medical facilities to the employees and Pensioners including Postal Pensioners.

L. To review and recommend Children Education Allowance and Hostel Subsidy upto the Post Graduation Level.

M. To review and recommend introduction of such advances which are required in the current circumstance and also to restore the advance which are abolished.

N. To consider Payment of Risk and Hardship Allowance to all the categories of Railway employees in the Indian Railways, considering the Risk and Hardship involved in the nature of duties of the Railway employees who work round the clock on all 365 days.

O. To consider the highly, perennial, risky and hazardous working conditions under which the Defence Civilian Employees involved in Manufacturing Arms, Ammunitions, Chemicals, Explosives & Acids etc., and also in its storage and to recommend a Special Risk Allowance, Insurance Coverage, Compensation etc.,

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Shiva Gopal Mishra
Secretary

Ph.: 23382286
National Council (Staff Side)
Joint Consultative Machinery
13-C, Ferozshah Road, New Delhi – 110001
E-Mail : nc.jcm.np[at]gmail.com

No.NC/JCM/2025

Dated: January 10, 2025

Hon’ble Minister for Finance,
Ministry of Finance
(Government of India)
North Block,
New Delhi.

Respected Madam,

The staff Side of the National Council (JCM), representing the Central Government employees’ in the country submits the undernoted significant issues/demands of the Central Government for your for kind consideration and including same in the Union Budget 2025-2026.

1. Constitution of the 8th Central Pay Commission for Central Government Employees and Pensioners.

The Wage/Pension revision of the Central Government Employees/Pensioners including Armed Forces and Para Military Forces takes place once in 10 years and the next wage / Pension revision is due on 01.01.2026. As you are aware that any Pay Commission will take minimum 2 years for conducting its study /interaction etc. to submit its final report to the Government and the Government also will take minimum 6 months for taking decision on its implementation. Government itself says that the inflation is in the range of 4% to 7% and on an average it shall be about 9.9%. If we compare the retail prices of essential commodities and goods which are required for daily life from 2016 to 2023 they have increased by over more than 90% as per the local retail market. But we are provided only with 53% DA as on 01.07.2024. The Central Government Revenue has also doubled from the year 2015 to 2023 for which the Central Government Employees contribution is enormous. Moreover, due to acute shortage of manpower in all the Central Government Establishments each employee is forced to do the work of more than 2 employees. Due to the escalating price rise and increasing medical and housing expenditure etc. the Pensioners are also in deep trouble. It is also a fact that a major portion of the wages of the employees/Pension goes back to the Government in the name of Income Tax and GST etc. Therefore, the Hon’ble Finance Minister may kindly announce the setting up of 8th Central Pay Commission for the Central Government Employees and the Pensioners.

2. Releasing of 18 months arrears of Dearness Allowance/Release which was frozen during the COVID-19 Pandemic period.

We have been demanding to the Government that in accordance with the judgments of the Hon’ble Supreme Court and also considering the fact that the economic conditions of the country is in a satisfactory level, the 18 months DA / DR arrears due to the Central Government Employees and Pensioners which was frozen during the COVID-19 pandemic period may please be paid back to the employees and Pensioners.

3. Restoration of Festival Advance for the Central Government Employees.

In one of the meetings of the National Council (JCM) the Official Side agreed to restore Festival Advance to the Central Government Employees. Even after more than 2 years no Government orders have been issued in this regard. Since, the Festival Advance is only an interest free loan to be recovered in 10 installments, it is requested that as demanded by the Staff Side in the National Council (JCM) Rs.30,000/- per year may be sanctioned as Festival Advance.

4. Implementation of the recommendations of the Parliamentary Standing Committee on Petitions with regard to CGHS facilities to the Central Government Employees and Pensioners.

The Parliamentary Standing Committee on Petitions with regard to CGHS facilities to the Central Government Employees and Pensioners in its 162nd report on the petition “praying for comprehensive medical facilities to Central Government Employees, Pensioners and their dependents” to the Rajya Sabha on 10th of August, 2023 have given various recommendations for improvement of the CGHS functioning. Such as to ensure that once a referral is issued, patient should not be required to visit CGHS Doctor again for undergoing the prescribed treatment procedure / investigations, to settle the complaints on the empanelled hospitals charging excess amount from the beneficiaries, revision of the CGHS rates, establishing additional Wellness Centers, to address the issue of shortage of Doctors, to improve the attitude of Doctors and allied Staff towards the patients, to ensure availability of all types of Medicines, to improve the infrastructure of the Wellness Centers, to construct Buildings for housing the Wellness Centers, relaxation of norms with regard to setting up of new Wellness Centers and consider exploring setting up of new Wellness Centers at a rapid place in newer Towns, retired employees as well as their dependents can avail the benefits of CGHS without much hassle, setting up of more AYUSH WCs in newer cities and also undertake initiatives to popularize Indian system of medicines among the beneficiaries of CGHS etc. The Committee also recommended that a pan-India Committee comprising doctors, beneficiaries and Members of Parliament should be constituted at the top level to do brainstorming on practical things and be mandated to submit a report on the overall aspects of the CGHS following a review of the whole situation. We request to kindly implement all these recommendations of the Parliamentary Standing Committee.

5. Implementation of the Parliamentary Standing Committee recommendations on Pensioners grievances.

The Parliamentary Standing Committee on Personnel, Public Grievances, Law and Justice submitted its report on “Pensioners Grievances” on 10th of December, 2021. The Parliamentary Standing Committee in its report has recommended to implement the recommendations of the 7th CPC regarding Insurance amount and monthly contributions towards the Central Government Employees Group Insurance Scheme, the Committee recommended to provide additional Pension of 5% on attaining 65 years of age, 10% on reaching 70 years of age, 15% on reaching /5 years, enhancing Fixed Medical Allowance to Pensioners to Rs. 3,000/- per month, opening CGHS Centers at District locations or designating functional Government Hospitals in District Headquarters as CGHS Centers etc. None of these recommendations are implemented by the Government. We request that the Government of India may kindly implement all the above recommendation of the Parliamentary Standing Committee.

6. Restoration of Commuted Pension after 12 years.

The Staff Side of the National Council (JCM) has been demanding for restoration of the Commuted Pension after 12 years instead of the present 15 years, since the Government recovers the entire commuted Pension within 11 years with interest. Many of the State Governments are restoring the commuted portion of the Pension after 12 years. There is no justification for recovering the 40% commuted Pension from the Pensioners for 15 years. Therefore, it is requested that the Government may kindly restore the commuted Pension after 12 years from the date of commutation.

7. Strengthening and effective function of the Joint Consultative Machinery (JCM) Scheme for the Central Government Employees.

The JCM Scheme was introduced by the Government of India during the year 1964 with the object of promoting harmonious relations and of securing the greatest measure of cooperation between the Government in its capacity as employer, and the general body of the employees in matters of common concern, and with the object further, of increasing the efficiency of the public service. It is now 60 years after the scheme is introduced. While for the first 4 decades the scheme was functioning effectively with regular meetings and sorting out the problems through joint consultations and compulsory arbitrations, it is most unfortunate that during the past 2 decades the JCM Scheme is diluted and side lined in such a manner that meetings takes place very rarely, issues are pending years together without any solution resulting in arbitrary decisions by the Official Side in all the Ministries on Cadre Review/Corporatization/ Restructuring/Closure/Framing of RR/Abolition of posts etc. This has resulted in demoralization of the Central Government Employees which will have serious impact on their performance and productivity. We therefore, request the Hon’ble Finance Minister to kindly take a decision and announce in the Budget about the effective functioning of the JCM Scheme and to conduct meetings and take decisions in accordance with the constitution of the JCM Scheme.

8. Income Tax rebate for the salaried employees.

Considering the inflation and also the escalating cost of living, health care, education etc. there should not be any Income Tax on salaried income upto Rs. 10 lakh in a year. Tax deduction should be there only for the income which is over and above Rs.10 Lakh per year which means upto Rs.10 lakh income it should be tax free.

We sincerely hope that that your goodself will consider favourably the above-mentioned issues/ demands of the Central Government and proposals and the same will be included in the Union Budget 2025-26.

With Kind Regards,

Sd/-
(Shiva Gopal Mishra)
Secretary(Staff Side

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Union Minister Ashwini Vaishnaw announced on Thursday that Prime Minister Narendra Modi has approved the establishment of the 8th Central Pay Commission for government employees. The announcement was made during a press briefing in Delhi to discuss recent cabinet decisions.

The minister pointed out that since India’s independence, seven pay commissions have been formed to revise the salaries and benefits of central government employees. He remarked, “For your information, our Prime Minister has approved the formation of the 8th Central Pay Commission for all central government employees.”

Vaishnaw highlighted the Prime Minister’s commitment to maintaining a consistent schedule for introducing pay commissions. He mentioned that the 7th Pay Commission, which began in 2016, will conclude its term in 2026. “In line with the Prime Minister’s commitment, the 7th Pay Commission commenced in 2016 and will complete its tenure in 2026,” he stated.

The minister also noted that initiating the 8th Pay Commission well before 2025 allows sufficient time for reviewing and finalizing recommendations. This proactive approach ensures the government can implement the proposed changes seamlessly before the 7th Pay Commission’s term ends.

Pay commissions play an essential role in structuring salaries, allowances, and other benefits for government employees, significantly influencing the livelihoods of millions of workers and pensioners across the nation.

The announcement of the 8th Pay Commission reflects the government’s dedication to meeting the financial and professional needs of its workforce. For central government employees, it offers assurance of fair and timely revisions to their pay scales and benefits, aligned with evolving economic conditions and policy priorities.

Input from ANI

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Ref: Confed./2024/8th CPC/

Dated – 11.12.2024

To,

The Hon’ble Prime Minister,
Office of Prime Minister,
South Block Raisina Hill,
New Delhi -110011

Sub: Request for Constitution of 8th Central Pay commission for Central Government employees and pensioners – regarding.

Respected Sir,

The Confederation of Central Government Employees and Workers, represents about 7 lakhs Central Government employees working in various Central Government Departments like Postal, Income tax, AG’s, Audit Departments, Survey Departments, Census, GSI, CPWD, CGHS etc. numbering about 130 Associations & Federations which are affiliates of Confederation of Central Government Employees and Workers.

The Central Government employees’ wages were last revised w.e.f. 01.01.2016, as on 01.07.2024, the percentage of DA entitlement crossed over 53%. During the past nine years the erosion of the real value of wages has become enormous especially after the Pandemic COVID-19. The depreciation of money value has come down very much.

The pay structure of the Central Government employees should be sound enough to attract the best talent of our Country, it should be revised every five years. The best talented employees would be instrumental in providing good leadership and good governance.

The Government of India is a model employer and it should take care of its employees to provide a comfortable living so that they work more effectively for implementation of the programmes and policies of the Central Government. The wage revision of Central Government employees is due from 01.01.2026, as it is in practice after every ten years.

The earlier Central Pay Commissions have all along been taking about 2 years for submitting their reports and another six months or more Government to consider it and to implement the same. A detailed note is enclosed along with the letter for perusal and necessary positive actions.

Hence, the Confederation requests that it is high time that the 8th  Central Pay Commission is constituted without any further delay, necessitated due to higher inflation levels and depreciation in money value, so that the Central Government employees and pensioners could lead a decent life and work more effectively to implement the programmes and policies of the Central Government, so that its benefits reaches the common man.

Thanking you,

Yours faithfully,

Sd/-
(S. B. Yadav)
Secretary General

CONFEDERATION OF CENTRAL GOVT. EMPLOYEES & WORKERS
1st Floor, North Avenue PO Building, New Delhi – 110001

Detailed Note:

The Central Government employees are the backbone of the Government, as they implement the programmes and policies of the Central Government and ensure that the benefits of it reaches the common man at the last mile of the country.

The Government of India is a model employer and it should take care of its employees to provide a comfortable living so that they work more effectively to implement the programmes and policies of the Central Government.

The Central Government wages were last revised as on 1/1/2016. After the pandemic situation (COVID) the prices of essential commodities and also the non-essential commodities have increased manifold including manufacturing industries, construction, health, service sector etc. The higher interest rates are also adversely affecting employees/Pensioners, the inflation is in the range of 4 % to 7% on an average is about 5.5 %. Due to higher inflation rates the real money value has gone down considerably in the past 9 years especially after the covid situation.

The Central Government employees should have a decent standard of living for which a decent living wage should be provided. As on 1.7.2024, the percentage of DA entitlement crossed over 53%. During the past 9 years the erosion of the value of wages has become enormous.

The residency period of any wage structure must not exceed 5 years, especially in the background that the pay revision in most of the PSUs takes place at the interval of 5 years. Similarly, the Bank employees wage revision takes place every 5 years.

Per capita Monthly Household Consumption Expenditure has more than doubled during 2011-12 to 2022-23, the data was published by NSSO, a government Department. This shows our expenditure has also doubled due to high inflation, but our wages have not increased accordingly, since last decade.

The Indian economy is steadily improving. The Indian economy, according to IMF estimates, will emerge as the world’s third largest economy by 2027, hopping over Japan and Germany, as its GDP crosses USSS trillion dollars. Hence the Central Government has good paying capacity.

The profit and loss of the Central Government departments should not be taken into account as the social responsibility of the Union Government is to provide social services like defence, posts, roads, railways, water, food, health, survey departments etc.

7th Central Pay commission recommendations:

To keep the salary structure of the employees viable, it has become necessary to improve the pay structure of their employees so that better, more competent and talented people could be attracted to governance.

The framework should be linked with the need to attract the most suitable talented candidate to the government service and promote efficiency, accountability and responsibility in the work culture.

The key expectation of employees at all levels is that there should be a significant increase in their pay and improvement in other facilities.

The pay structure should also need to address any significant deterioration in real value of emoluments as a consequence of inflation. One should get proper and adequate compensation for his merit. The increase in pay structure cannot keep pace with the market forces, at the same time it should not be so unattractive that talent is not attracted to government service.

7th CPC para number 1.29: As we have mentioned above, government service is not a contract. It is a status. The employees expect fair treatment from the government. The States should play a role model for the services. In this connection, it will be useful to quote the observations in the case of Bhupendra Nath Hazarika and another vs. State of Assam and others (reported in 2013(2) Sec 516) wherein the Apex Court has observed as follows: “……… It should always be borne in mind that legitimate aspirations of the employees are not guillotined and a situation is not created where hopes end in despair. Hope for everyone is gloriously precious and that a model employer should not convert it to be deceitful and treacherous by playing a game of chess with their seniority.

A sense of calm sensibility and concerned sincerity should be reflected in every step. An atmosphere of trust has to prevail and when the employees are absolutely sure that their trust shall not be betrayed and they shall be treated with dignified fairness then only the concept of good governance can be concretized. We say no more. The pay scales of Central Government employees should be revised every five years as done in banking services, the inflation levels are rising and the ten years present revision is not favourable for employees and pensioners.

(S. B. Yadav)
Secretary General

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GOVERNMENT OF INDIA
MINISTRY OF FINANCE DEPARTMENT OF EXPENDITURE

LOK SABHA

UNSTARRED QUESTION No. 2186
TO BE ANSWERED ON MONDAY, DECEMBER 9, 2024 AGRAHAYANA 18, 1946 (SAKA)

“Constitution of 8th Central Pay Commission (CPC)”

2186: SHRI JAi PRAKASH
SHRI ANAND BHADAURIA
SHRI VE VAITHILINGAM

Will the Minister of FINANCE

(a) whether 7th Central Pay Commission (CPC) for Central Government employees was constituted in February, 2013 ;

(b) if so, the reasons for not constituting 8th CPC so far, even after more than 10 years of Constitution of 7th CPC and ignoring the unprecedented price rise/cost of living and plights of employees;

(c) whether the Government is aware of resentment among Central Government employees for not constituting the 8th CPC and if so, the response of the Government thereto ;

(d) whether the Government is considering Constitution of 8th Central Pay Commission for Central Government employees, armed forces, etc.; and

(e) if so, the time by which it is announced?

ANSWER

MINISTER OF STATE IN THE MINISTRY OF FINANCE

(SHRI PANKAJ CHAUDHARY)

(a): No, sir. The 7th Central Pay Commission was constituted on 28th February, 2014.

(b) to (d): No such proposal is under consideration with the Government for constitution of Eighth Central Pay Commission for the Central Government employees, at present.

(e): Does not arise.

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