Another major update is here regarding the 8th Pay Commission. On Monday, Lok Sabha members Kangana Ranaut and Saajda Ahmed brought up the topic of the Eighth Pay Commission during the House proceedings. They inquired whether the government has set up the Eighth Pay Commission to review the salaries and pensions of central government employees.
They posed two main questions: first, when will the Commission start its work, and second, what are the specifics regarding its terms of reference and the deadline for submitting its report to the government. In reply, Finance Minister Nirmala Sitharaman confirmed that the government has indeed decided to establish the Eighth Central Pay Commission, with further decisions to be made in due time.
The effects of the Eighth Pay Commission will only be clear once it issues its recommendations and the government approves them. The government is currently gathering input from important stakeholders, including the Ministry of Defense, Ministry of Home Affairs, Department of Personnel and Training, and various states regarding the Commission’s terms of reference.
First, how many Central Government employees and pensioners, as per the Seventh Central Pay Commission, are expected to benefit from the establishment of the Eighth Pay Commission? Second, will implementing the Eighth Pay Commission’s recommendations likely add to the government’s financial strain? Third, has there been any research conducted by the government to evaluate how the Eighth Pay Commission might affect fiscal policies and government spending? Have there been discussions with employee unions, pensioners, and other relevant parties?
In response to the first question, Finance Minister Nirmala Sitharaman confirmed that the government has decided to set up the Eighth Central Pay Commission. Regarding the second question, she mentioned that a decision will be made in due time. For the third question, she stated that as of March 1, 2025, there are 36.57 lakh civilian employees and 33.91 lakh pensioners/family pensioners in the Central Government. Defense personnel and their pensioners will also see benefits. When addressing the fourth and fifth questions, the Finance Minister noted that the financial impact of the Eighth Pay Commission’s recommendations will be clearer once they are made and approved by the government.
As for the sixth question, the Finance Minister indicated that feedback has been gathered from important stakeholders, including the Ministry of Defence, Ministry of Home Affairs, Department of Personnel and Training, and various states for consideration. The effects of the Eighth Pay Commission can only be assessed after its recommendations are made and accepted by the government.
Recently, the Central Government requested the terms of reference for the Eighth Pay Commission from the National Council, which is the highest forum for employees. Following that, a meeting of the Standing Committee of the National Council was held.
During the meeting of the Standing Committee of the National Council-JCM, the employee representatives included M Raghavaiya (leader), C. Srikumar, JR Bhosale, Guman Singh, BC Sharma, Rupak Sarkar, and Tapas Bose, all members of the Standing Committee. They highlighted the urgent need for a comprehensive review and enhancement of the rules governing salary allowances. Given the rising cost of living, employees and their families are struggling to access necessary medical care. It was suggested that the family unit should now consist of at least five members instead of three.
Regarding the Eighth Pay Commission’s terms of reference, the employee representatives argued that the minimum wage should be established with consideration for essential living costs. They stressed the importance of creating conditions that allow employees to lead a dignified life. Additionally, there was a call for the reinstatement of the old pension scheme. Special attention was requested for railway and defense civilian employees within the terms of reference.
Furthermore, they advocated for the inclusion of pensioners’ issues and provisions related to the Central Government Health Scheme (CGHS). Other requests encompassed a review of the current salary structure, allowances, and benefits for various employee categories, as well as addressing retirement matters such as pensions, gratuities, and other terminal benefits.