8th pay commission’s ToR outlines expectations: DA hike, salary structure, pension, allowances — Check full list here

The 8th pay commission’s official terms of reference outline what expectations central government employees and pensioners can have from the final official recommendations. Approved by the Union Cabinet in October last year, the ToR provides a framework that defines the scope of a pay commission. It also specifies the areas in which it must offer recommendations.

The 8th CPC is expected to benefit over a crore central government employees and pensioners — around 50 lakh central government employees and nearly 65 lakh central government pensioners, including defence and railway staff and retirees. Notably, central government employees and armed forces personnel represent 0.7% of India’s 60 crore strong labour force, and nearly 9% of the formal sector.

Today, we discuss, the 8th CPC’s full list of likely announcements — from increase in Dearness Allowance hike to revised salary structure, pension hike, allowances and other benefits.

8th pay commission: What are the Terms of Service?

The 8th Pay Commission will be a temporary body, comprising one Chairperson, one Member (Part Time), and one Member-Secretary to make its recommendations within 18 months of the date of its constitution. It may consider, if necessary, sending interim reports on any of the matters as and when the recommendations are finalised.

Further, when formulating its recommendations, the 8th CPC is expected to keep the following factors in mind:

• The economic conditions in the country and the need for fiscal prudence;
• The need to ensure that adequate resources are available for developmental expenditure and welfare measures;
• The unfunded cost of non-contributory pension schemes;
• The likely impact of the recommendations on the finances of the State Governments which usually adopt the recommendations with some modifications; and
• The prevailing emolument structure, benefits and working conditions available to employees of Central Public Sector Undertakings and private sector.

Here’s what recommendations can be expected: Full list

Examine and recommend changes that are desirable and feasible in the emoluments including:

To work out an emolument structure conducive to attracting talent to Government service, promoting:

• Efficiency,
• Accountability and
• Responsibility in the work culture.

To examine the existing schemes of bonus with a view to:

• Improving performance and productivity and
• Make recommendations on the general principles, financial parameters, productivity and performance linked parameters for an appropriate incentive scheme
• To reward excellence in productivity and performance.

To review the existing allowances and conditions of their admissibility and recommend

For pensioners, to review

• The Death-cum-Retirement Gratuity of employees borne on National Pension System (including Unified Pension Scheme) and make recommendations;
• The Death-cum-Retirement Gratuity and pensions of employees not borne on the NPS (including UPS) and make recommendations.

Which government employees are eligible for 8th CPC recommendations?

This will be for various government departments, agencies and services in respect of following categories of employees: