The Union Cabinet gave the green light to the 8th Pay Commission in January 2025, but they still need to finalize who will be on the team and who will lead it. The government has reached out to the National Council-Joint Consultative Machinery (NC-JCM) for input on the Terms of Reference (ToR) for the commission. The staff side of NC-JCM has suggested that the new pay commission should look into providing at least 5 promotions during service.

 

What’s the current situation?

The NC-JCM staff side is pushing for the Pay Commission to consider a minimum of 5 promotions, in addition to addressing the current issues with the MACP scheme. Just to clarify, the Modified Assured Career Progression (MACP) guarantees that all central government employees receive at least three promotions over a 30-year career. Right now, the government promises three promotions at the 10, 20, and 30-year marks.

 

Possible salary increase

Experts believe that the new pay commission might look at fitment factors ranging from 1.92 to 2.86. If these factors are applied, central government employees and pensioners could see a pay revision between 92% and 186%.

 

Other suggestions made

The National Council-Joint Consultative Machinery (NC-JCM) has also proposed additional suggestions regarding the Terms of Reference, which include the following:

 

Pay Restructuring: We’re looking to review the pay structure for all employee categories. This means combining some non-viable pay scales to help with career growth.

 

Minimum Wages: We aim to set a fair minimum wage using the Ackroyd formula and the suggestions from the 15th Indian Labour Conference.

 

Dearness Allowance: We’re planning to merge the DA/DR with basic pay and pensions to enhance financial security.

 

Retirement Benefits: We’re revising pension, gratuity, and family pension benefits, plus bringing back the defined pension scheme for those hired after January 1, 2004.

 

Medical Benefits: We’re working on improving CGHS (Central Government Health Scheme) services for easier and cashless medical care.

 

Education Allowance: We’re extending the children’s education allowance and hostel subsidy all the way through graduation.