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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GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF EXPENDITURE

RAJYA SABHA
UNSTARRED QUESTION No. 532

TO BE ANSWERED ON TUESDAY, JULY 25, 2023
SRAVANA 3, 1945 (SAKA)

“Constitution of Eighth Central Pay Commission”

532: SHRI JAVED ALI KHAN

Will the Minister of Finance be pleased to state:

(a) whether Government has not considered para 1.22 contained in 7th Central Pay Commission (CPC) report which recommended that pay matrix of Central Government employees may be reviewed periodically without waiting for long period of 10 years on the basis of Aykroyd formula;

(b) if so, whether Government would constitute Eighth CPC in view of the highest inflation in last 30 years and constitution of Seventh CPC in the year 2013;

(c) if so, the details thereof; and

(d) if not, the reasons therefor?

ANSWER

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

(a): The Government has not considered this issue while according the approval of the revision of pay and allowances based on Seventh Central Pay Commission.

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

GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF EXPENDITURE
RAJYA SABHA
UNSTARRED QUESTION No. 550
TO BE ANSWERED ON TUESDAY, JULY 25, 2023/ SRAVANA 3, 1945 (SAKA)

SETTING UP OF EIGHTH CENTRAL PAY COMMISSION

950: SHRI RAM NATH THAKUR ;

Will the Minister of Finance be pleased to state:

(a) whether between January 2016 and January 2023, the pay and pension of Central employees increased by just 42 per cent, whereas, over this same period, the per capita income of country had climbed by 111 per cent:

(b) if so, the details thereof,

(c) whether as recommended by last three Central Pay Commissions, future pay revision should be done when DA/DR reaches 50 per cent or more than basic pay to neutralize the impact of inflation; and

(d) as the rate of DA/DR is projected to cross 50 per cent or even more from January 2024, whether the Central Government proposed to set up Eighth Central Pay Commission, if so, details thereof?

ANSWER

MINISTER OF STATE FOR FINANCE
(SHRI PANKAJ CHAUDHARY)

(a) & (b): Dearness Allowance (DA) and Dearness Relief (DR) is paid to Central Government employees and pensioners to compensate them for erosion in the real value of their pay and pension on account of inflation. These rates were increased to 42% of the pay and pension in January, 2023. The rates of DA/DR are revised periodically at every six months on the basis of All India Consumer Price Index for Industrial Workers (AICPI-IW).

(c) & (d): No such proposal is under consideration of the Government.

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RAILWAY SENIOR CITIZENS WELFARE SOCIETY
(Estd. 1991, Regd. No. 1881 – Under Registration of Societies Act),
IDENTIFIED BY DOP&PW GOVT. OF INDIA – UNDER PENSIONERS’ PORTAL
MEMBER, SCOVA (STANDING COMMITTEE FOR VOLUNTARY AGENCIES)

No. RSCWS/CHD/Memo -8th CPC/2023-6

Dated: 30-5-2023

Smt. Nirmala Sitharaman,
Hon’ble Minister of Finance,
Government of India,
North Block, New Delhi – 110001.
CC by Emai; Smt. Nirmala Sitharaman MOF <nsitharaman [at]nic.in>

Sub: Setting up of 8th Central Pay Commission (CPC).

Madam,

1. We draw your kind attention and that of the Government towards the financial constraints through which the Central Government employees and pensioners are passing for the last 70 years due to long gaps of 10 years between the Central Pay Commissions since Independence and very negligible rise of Pay & Pension each time due to defective formulae for fixation of revised Pay & Allowances and Pension adopted by each Pay Commission. Thus it leads to erosion of relativity with the other sections of society as well as the relativity vis-à-vis Per Capita Income of the Country.

2. The Seventh Central Pay Commission (CPC) had submitted its report in February 2017. Orders for its implementation were issued in July & August, 2017 with the provision that arrears of Revised Pays be paid w.e.f. 1-1-2016 and that of the Allowances etc. from later date(s).

3. a) Per capita income (as interpolated at current prices) in India had more than doubled from Rs.93,293/- in 2015-16 to Rs 1,97,000/- in 2022-23 (as per Budget Speech of MOF for the year 2023-24).

• b) Pay & Pension of Central Govt. employees had increased by only 42% from 1-1-2016 to 1-1-2023 as against a rise of 111% in the Per Capita Income of the Country in this period as per details indicated above.
• c) This was a great injustice with the Central Government employees and pensioners, caused due to continuous erosion of their real income; the Dearness Allowances and Dearness Reliefs do not provide requisite relief against inflation nor do they provide the required element to keep pace with the rise in per capita income of the country.

4. Seventh Pay Commission had fixed the Minimum Pay as Rs.18,000 instead of Rs.26,000 and erroneously proposed the fitment Factor as 2.57 instead of 3.15 thus doing great injustice to the employees and the pensioners, who face a triple jeopardy with deficient formula for DA & DR especially on account of irrational weightage to consumable items for compiling Consumer Price Index.

5. Fifth & Sixth Pay Commissions had recommended for delinking the Pay revision from a 10 years norm and link it with the date from which DA/DR rises above 50%.For ready reference, an extract of the relevant Para (1.1.4) of Sixth Pay Commission, is placed at Annexure 1 of this Memorandum.

6. As per the recommendations of the last three Central Pay Commissions, the future pay revision should be done when the DA/DR reaches 50% or more than the basic pay; the pay structure needs revision to neutralize the impact of inflation. The rate of DA/DR is projected to cross 50% or even more from Jan-2024 and as such the Pay & Allowances and Pension needs to be revised from January, 2024 accordingly.

7. The Pay Commissions have all along been taking about 2 years for submitting their Reports and another one year or more is taken by the Government to consider and to implement the same. This further erodes the relative value of the Pay & Pension proposed by Pay Commission.

8. It is therefore requested that Eighth Central Pay Commission may please be set up early and an Interim relief be granted to the Central Government employees & Pensioners w.e.f. 1-1-2024, to compensate them for the erosion of their Pay and Pension due to inflation & loss on account of relativity with GDP.

With regards.

Yours faithfully,

Secretary General/ RSCWS

Copy To:

1 Secretary, Finance Expenditure, North Block, New Delhi -110001.
2 Secretary, Department of Public Grievances, Adm. Reforms & Pensions, 5th Floor, Patel Bhavan, Parliament Street, New Delhi – 110001

ANNEXURE – I

Para1.1.4 of 6th CPC is reproduced below:

1.1.4 The Fifth Pay Commission had recommended that pay revision should, in future, be entrusted to a permanent Pay Commission drawing its authority from a constitutional provision and whose recommendations, made annually, should have a binding character. The Commission, as an alternative, suggested that dearness allowance should be converted into dearness pay every time the cost of living rises by 50% over the base level. In their opinion, DA would normally increase by 50% in a period of 5 years and that this relief could be combined with a decennial exercise of pay revision through a Pay Commission, meeting partially the demands of Central Government employees for a more frequent revision of salaries on the analogy of public sector employees. The Fifth CPC recommended constitution of the next Pay Commission by 2003 so that its report was available by 2006. Although the Government did not appoint the next Pay Commission in 2003, it allowed merger of 50% of dearness allowance with pay with effect from 1/4/2004.

Download RSCWS Memorandum to MOF to Constitute 8th CPC PDF

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