Rules, Rights & Rites -64
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"Eighth Central Pay Commission" (Rajya Sabha Unstarred Question No. 223, dated July 22, 2025):
• The Government has received suggestions from the National Council of Joint Consultative Machinery (NC-JCM) for framing the terms of reference for the Eighth Central Pay Commission. These suggestions are part of stakeholder consultations.
• Inputs have been sought from major stakeholders including the Ministry of Defence, Ministry of Home Affairs, Department of Personnel & Training, and from States.
• NC-JCM's Suggested Terms of Reference:
o Scope of Examination: To examine the existing structure of pay, allowances, benefits, and retirement benefits for various categories of employees, including Central Government industrial and non-industrial employees, All India Services personnel, Defence and Para Military Forces personnel, Grameen Dak Sewaks, Union Territories personnel, Indian Audit and Accounts Department officers and employees, Supreme Court officers and employees, Members of Regulatory bodies (excluding RBI), and employees of Central Government Autonomous Bodies and Institutions.
o Revised Pay Packet: To work out a comprehensive revised pay packet for the aforementioned categories as of January 1, 2026.
o Minimum Wage Determination: The Commission should determine the pay structure, benefits, and retirement benefits based on providing a "Decent and dignified Living Wage" with reference to the 15th Indian Labour Conference (1957) recommendations, modifications to the Dr. Aykroyd formula, and Supreme Court Judgments on minimum wages as of January 1, 2026. It should also consider increasing consumption units from 3 to 3.6 family units as recommended by an expert committee.
o Merger of Pay Scales: Consider merging non-viable pay scales such as Level-1 with Level-2, Level-3 with Level-4, and Level-5 with Level-6.
o MACP Scheme Anomalies: Consider existing anomalies in the MACP scheme and recommend a minimum of 3 promotions in service with a defined hierarchical structure and MACP in the promotional hierarchy.
o Interim Relief: Determine the interim relief to be sanctioned immediately to Central Government employees and pensioners.
o DA/DR Merger: Determine the percentage of Dearness Allowance/Dearness Relief to be immediately merged with Pay & Pension.
o 7th CPC Anomalies: Settle various 7th CPC Anomalies raised by the Staff Side in Anomaly Committee and JCM meetings.
o Retirement Benefits Review: Work out improvements to existing retirement benefits like pension, Death cum retirement Gratuity, Family pension, restoration of commuted pension after 12 years, implementation of Parliamentary Standing Committee recommendations for pension enhancement every 5 years, and parity amongst past and future pensioners.
o Restoration of Old Pension Scheme: Review and restore the defined and non-contributory Pension Scheme under CCS (Pension Rules) 1972 (Now 2021) for Central Government employees recruited on or after January 1, 2004.
o Medical Facilities: Recommend Parliamentary Standing Committee recommendations on CGHS related matters, FMA, and methods for providing cashless/hassle-free medical facilities to employees and pensioners, including Postal Pensioners.
o Children Education Allowance: Review and recommend Children Education Allowance and Hostel Subsidy up to the Post Graduation Level.
o Restoration of Advances: Review and recommend the introduction of required advances and restoration of abolished advances.
o Risk and Hardship Allowance for Railways: Consider payment of Risk and Hardship Allowance to all categories of Railway employees.
o Special Risk Allowance for Defence Civilians: Consider a Special Risk Allowance, Insurance Coverage, and Compensation for Defence Civilian Employees involved in manufacturing arms, ammunition, chemicals, explosives, and acids, and their storage.
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