The 8th Pay Commission: The National Council of Joint Consultative Machinery (JCM) Staff Side has put forth its recommendations regarding the Terms of Reference (ToR) for the 8th Central Pay Commission (CPC), advocating for substantial modifications in the pay structure, allowances, and benefits for government employees. A significant aspect of the ToR includes the proposal to merge specific pay scales to enhance the salary framework and rectify discrepancies in career advancement.
Within the JCM framework, the “National Council Staff Side” comprises representatives from various employee unions and associations who engage in discussions with the government at the national level. Conversely, the “National Council Official Side” consists of government officials from different ministries and departments who collaborate with the staff side on various employee-related issues. The Union Cabinet Secretary leads the National Council JCM.
Following the government’s approval last month to establish the 8th Pay Commission, the Department of Personnel and Training (DoPT) has recently sought input from the Staff Side of the National Council JCM to finalize the ToR for the 8th Central Pay Commission.
In this context, Shiv Gopal Mishra, Secretary of the NC-JCM Staff Side, has presented a comprehensive proposal highlighting critical areas requiring attention. A primary recommendation from the Staff Side is the merging of pay scales for government employees within the 1-6 pay levels.
The pay scale system encompasses 18 levels, ranging from level 1 to level 18. Subsequent to the 7th Pay Commission, the minimum salary at level 1 was established at Rs 18,000 per month, while the maximum salary at level 18 was set at Rs 2,50,000 per month.
Proposal for the Consolidation of Pay Scales:
A significant recommendation from the Staff Side is the consolidation of lower pay scales to promote equitable compensation and facilitate smoother career advancement. The proposal suggests the following mergers:
- Level 1 with Level 2
- Level 3 with Level 4
- Level 5 with Level 6
What will be the implications of these mergers on the salaries of employees in Levels 1-6?
Currently, a Level 1 employee earns a basic pay of Rs 18,000 per month, while a Level 2 employee receives Rs 19,900. The merger of these two levels would primarily benefit the Level 1 employee, as the new pay structure would commence from this level. If we project the salary increase following the 8th pay commission, with an anticipated fitment factor of up to 2.86, the revised basic pay could rise to Rs 51,480.
In a similar vein, merging Levels 3 and 4 would result in a new salary of Rs 72,930 for employees within the combined pay scale.
For Levels 5 and 6, the salary could potentially increase to Rs 1,01,244 for employees, based on the 2.86 fitment factor.
This initiative seeks to address pay progression disparities and establish a more organized salary framework. The proposal emphasizes that such a consolidation will benefit employees by minimizing stagnation and fostering improved financial growth over time.
Demand for the Merger of DA and DR:
In addition to the proposed merger of pay scales, the Staff Side has firmly advocated for the prompt integration of Dearness Allowance (DA) and Dearness Relief (DR) with both basic pay and pension. The recommendation entails that a specified percentage of DA/DR be incorporated into the overall pay structure, thereby increasing net salaries and pensions. This adjustment aims to mitigate the effects of inflation on government employees and pensioners.
Interim Financial Support for Employees:
Another significant request is the provision of Interim Relief for Central Government employees and pensioners prior to the finalization of the 8th Central Pay Commission (CPC) recommendations. This measure is designed to offer immediate financial assistance, addressing the escalating cost of living while the commission reviews long-term salary adjustments.
Enhancement of Retirement Benefits:
The Staff Side has also called upon the government to enhance retirement benefits, which includes:
- Reducing the pension restoration period from 15 years to 12 years.
- Adopting the recommendations of the Parliamentary Standing Committee for pension increases every five years.
Ensuring Equitable Treatment for Pensioners:
Furthermore, there is a strong demand for the reinstatement of the Defined Benefit Pension Scheme under the Central Civil Services (Pension) Rules, 1972 (now updated to 2021), for employees hired after 2004, thereby replacing the current contributory pension system.
What are the forthcoming steps?
The Staff Side has urged the government to convene a Standing Committee Meeting to deliberate on these recommendations prior to finalizing the Terms of Reference for the 8th Central Pay Commission (CPC). If these modifications are approved, they could provide substantial financial relief and initiate structural reforms for millions of government employees and pensioners across various sectors.
What is the most recent update regarding the 8th Pay Commission?
The government is anticipated to establish a three-member panel for the 8th Pay Commission, which will be chaired by a designated chairman, within this month. The commission is expected to present its report to the government in approximately 12 months. The government will base its decisions regarding the revision of pensions and salaries for over 12 million central government employees and pensioners on the recommendations provided by the panel.
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