The 8th Pay Commission is set to play a crucial role in determining the future salary structure and promotions of central government employees. The Union Government has sought recommendations from the National Council of Joint Consultative Machinery (NC-JCM) regarding the Terms of Reference (TOR) for the commission. In response, employee representatives have suggested that the new pay commission should ensure at least five promotions during an employee's tenure.

8th Pay Commission Approved, Awaiting Finalization

In January 2025, the Union Cabinet gave the green light to the 8th Pay Commission, though the government has yet to finalize its members and chairman. The commission is expected to review and revise the pay structure, allowances, and career progression of government employees.

Key Demand: Minimum of 5 Promotions in Service

According to the NC-JCM, the pay commission should address existing disparities in the Modified Assured Career Progression (MACP) scheme and consider increasing the number of guaranteed promotions. Currently, under MACP, central government employees receive three assured career advancements—at 10, 20, and 30 years of service. However, employees are advocating for at least five promotions to ensure better career growth.

Potential Salary Hike for Central Government Employees

Economic analysts predict that the 8th Pay Commission may recommend a fitment factor ranging between 1.92 and 2.86. If implemented, this could lead to a salary increase of 92% to 186% for central government employees and pensioners.

Major Proposals Under Consideration

The 8th Pay Commission is expected to evaluate multiple key proposals, including:

1. Salary Structure Revision

• Reviewing and merging pay scales across different employee categories.

2. Minimum Wage Determination

• Setting a fair minimum wage based on the Aykroyd formula and the 15th Indian Labor Conference recommendations.

3. Dearness Allowance (DA) Merger

• Proposing the merger of DA with basic pay and pension to improve financial security.

4. Retirement Benefits Enhancement

• Revising pension, gratuity, and family pension benefits.
• Reintroducing the Defined Pension Scheme for employees recruited after January 1, 2004.

5. Improved Medical Facilities

• Expanding CGHS (Central Government Health Scheme) benefits to ensure cashless and hassle-free medical services.

6. Enhanced Education Allowance

• Increasing the Children Education Allowance (CEA) and hostel subsidy up to the postgraduate level.

Final Decision Pending

The 8th Pay Commission is expected to conduct a thorough review before submitting its final recommendations. While employee unions push for improved career progression, salary hikes, and enhanced benefits, the ultimate decision rests with the government and the commission’s appointed members.

Stay tuned for further updates on salary revisions, promotions, and policy changes as the 8th Pay Commission takes shape.