The Terms of Reference (ToR) for the 8th Central Pay Commission are likely to be approved soon, paving the way for crucial negotiations between central government employees and the Centre on salary, pension, and allowance revisions. Senior members of the National Council–Joint Consultative Machinery (NC-JCM) confirmed that the government is expected to clear the ToR shortly, allowing employee unions to officially place their key demands.
“We expect the Terms of Reference to get the government’s nod soon. It should be approved at the earliest,” said Shiv Gopal Mishra, Secretary, Staff Side of the NC-JCM, in a statement to NDTV Profit. Another NC-JCM member, speaking on condition of anonymity, echoed the same view, indicating movement on the long-awaited process.
The NC-JCM is a joint body consisting of union leaders and government officials, tasked with resolving disputes and streamlining dialogue between employees and the Centre.
In January, the government had sought suggestions from the staff side regarding the ToR. In response, the NC-JCM submitted a draft outlining a series of pressing demands, with a particular focus on minimum wages and the fitment factor—the multiplier used to revise basic pay under the commission.
A major shift proposed by the NC-JCM is the recalculation of minimum wages based on the consumption needs of five units, instead of the current three, which includes accounting for dependent parents. Mishra argued that the earlier approach under the 7th Pay Commission is outdated and fails to reflect contemporary family structures. “Caring for parents is not just a moral duty but also a legal obligation under the Maintenance and Welfare of Parents and Senior Citizens Act, 2022,” he said.
The forum has also sought:
- Merger of unviable pay scales to prevent stagnation—proposing to combine Level 1 with Level 2, Level 3 with Level 4, and Level 5 with Level 6.
- Restoration of the commuted portion of pension after 12 years.
- Periodic pension enhancement every five years, in line with parliamentary recommendations.
- Merger of 50% Dearness Allowance (DA) with basic pay, a practice followed under the 5th Pay Commission but discontinued thereafter.
Currently, DA stands at 55%, following the latest revision in March. The demand to merge it with basic pay has resurfaced as inflation continues to erode purchasing power.
Although the 8th Pay Commission was approved by the Union Cabinet in January 2024, the panel has not yet been constituted. Its implementation is expected from January 1, 2026, but delays in setting up the panel and finalising the ToR could potentially push the timeline to 2027.
Pay commissions are typically established once every decade and play a crucial role in revising the pay structure and retirement benefits of over one crore central government employees and pensioners across the country.