Suggestions from NC-JCM on 8th Central Pay Commission’s Terms of Reference and Government Plan
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF EXPENDITURE
RAJYA SABHA
UNSTARRED QUESTIONS No. 223
TO BE ANSWERED ON TUESDAY, JULY 22, 2025/31 ASHADHA, 1947 (SAKA)
“EIGHTH CENTRAL PAY COMMISSION”
223: Shri Bhubaneswar Kalita:
Will the Minister of Finance be pleased to state:
(a) whether Government has received any suggestion from the National Council of Joint Consultative Machinery (NC-JCM) for framing the terms of reference for Eighth Central Pay Commission, if so, the main suggestions of the council;
(b) whether these suggestions are being considered by Government;
(c) whether Government is planning to involve all stakeholders in the Commission; and
(d) if so, the details thereof, if not, the reasons therefor?
ANSWER
MINISTER OF STATE IN THE MINISTRY OF FINANCE
(SHRI PANKAJ CHAUDHARY)
(a) & (b): A copy of the suggestions received from the National Council of Joint Consultative Machinery (NC-JCM), as part of the stakeholder consultation, is enclosed as Annexure-I.
(c) & (d): Inputs have been sought from major stakeholders, including Ministry of Defence, Ministry of Home Affairs, Department of Personnel & Training and from States.
Annexure-I
Statement referred to in reply of part (a) & (b) of Rajya Sabha Unstarred Question No. 223 for answer on 22-07-2025
Terms of Reference for 8th CPC forwarded by Secretary Staff Side NC(JCM) through Department of Personnel & Training
A. To examine the existing structure of pay, Allowances and other benefits /facilities, retirement benefits like pension / gratuity and other terminals benefits etc. to the following categories of employees:-
- Central Government employees-industrial and non-industrial.
- Personnel belonging to All India services.
- Personnel belonging to the Defence Forces and Para Military Forces.
- Personnel called as Grameen Dak Sewaks belonging to the Postal Department.
- Personnel of Union Territories.
- Officers and employees of the Indian Audit and Accounts Department.
- Officers and employees of the Supreme Court.
- Members of Regulatory bodies (excluding RBI) set up under Act of Parliament.
- Employees of Central Government Autonomous Bodies and Institutions.
B. To work out the comprehensive revised pay packet for the categories of Central Government Employees mentioned in (A)above as on 1.1.2026.Central government jobs
Also Read: 8th Pay Commission: Chairperson and Members Appointments Expected Soon: Lok Sabha
C. The Commission will determine the Pay structure, benefits, facilities retirement benefits, welfare matters etc taking in to account to provide the minimum wage as a “Decent and dignified Living Wage” with reference to the recommendation of the 15th Indian Labour Conference (1957) with modifications in the Dr. Aykroyd formula considering the developments and life requirements which has undergone changes.in last 65 years and also the various Judgments of Hon’ble Supreme Court Judgments on fixing the minimum wages as on 1:1.2026. The Commission also consider to increase the consumption units from 03 family units to 3.6 family units as recommended by an expert committee constituted by Ministry of Labour and Employment to determine the National Minimum Wage Policy in the year 2019.
D. The 8 CPC should consider the merger of non-viable Pay scales such as Level with Level — 2 and Level — 3 with Level — 4 and Level — 5 with Level — 6.
E. To consider the existing anomalies in the MACP scheme and to recommend minimum 3 promotion in service with very defined Hierarchical Structure and MACP in the Promotional Hierarchy.
F. To determine the Interim Relief to be sanctioned immediately to the Central Government employees and pensioners mentioned in (A) above.
G. To determine the percentage of Dearness Allowance / Dearness Relief immediately to be merged with Pay & Pension.
H. To settle the various 7th CPC Anomalies which the Staff Side raised in the Anomaly Committee meetings and JCM meetings.
I. To Workout the improvements needed to the existing retirement benefits like pension, Death cum retirement Gratuity, Family pension, restoration of commuted portion of pension after 12 years, implementation of Parliamentary Standing Committee recommendations for enhancement of pension after every 5 years, parity amongst past, future pensioners.
J. To review and to restore the defined and non contributory Pension Scheme Under CCS (Pension Rules) 1972 (Now 2021) to the Central Government employees recruited on or after 1/1/2004
K. To recommend the parliamentary Standing Committee recommendation on CGHS related matter FMA and to recommend methods for providing cashless/ hassle-free Medical facilities to the employees and Pensioners including Postal Pensioners.
L. To review and recommend Children Education Allowance and Hostel Subsidy upto the Post Graduation Level.
M. To review and recommend introduction of such advances which are required in the current circumstance and also to restore the advance which are abolished.
N. To consider Payment of Risk and Hardship Allowance to all the categories of Railway employees in the Indian Railways, considering the Risk and Hardship involved in the nature of duties of the Railway employees who work round the clock on all 365 days.
O. To consider the highly, perennial, risky and hazardous working conditions under which the Defence Civilian Employees involved in Manufacturing Arms, Ammunitions, Chemicals, Explosives & Acids etc., and also in its storage and to recommend a Special Risk Allowance, Insurance Coverage, Compensation etc.
