8th Pay Commission : After a long wait, the central government has finally officially announced the formation of the 8th Central Pay Commission.
The Commission’s composition, members, terms of reference (TOR), and headquarters have been shared in a gazette notification issued by the Finance Ministry’s Department of Expenditure on November 3. The commission has been tasked with reviewing and making recommendations on the salaries, allowances, and other benefits of central government employees and pensioners.
Structure of the 8th Pay Commission
According to the notification issued by the government, a three-member commission has been constituted –
Chairperson: Justice Ranjan Prakash Desai
Part-Time Member: Prof. Pulak Ghosh
Member-Secretary: Pankaj Jain
The Commission will be mandated to ensure that the pay structure of Central Government employees is rational, efficient and performance-based, in consonance with the current economic conditions and financial discipline.
Scope of the 8th Pay Commission
The government has issued detailed TORs for the Commission. Under these, the Commission will be required to perform the following functions:
(a) The Commission will examine and recommend such changes as are necessary and practicable in the pay, allowances and facilities of employees of the Central Government, the All India Services, the Defence Forces and other departments. These include:
1. Industrial and non-industrial employees of the Central Government
2. Officers of All India Services
3. Defence Forces Personnel
4. Employees of Union Territories
5. Officers of the Indian Audit and Accounts Department (IA&AD)
6. Members of regulatory bodies (except RBI) set up by Parliament
7. Officers and employees of the Supreme Court
8. Employees of High Courts whose expenses are borne by the Union Territories
9. Judicial officers of the subordinate judiciary of the Union Territories
(b) The Commission will suggest such a pay structure which will attract qualified talent to the Government service and promote a sense of accountability, efficiency and responsibility among the employees.
(c) The Commission will review existing bonus and incentive schemes and recommend new performance-based schemes to reward productivity and excellence.
(d) Existing allowances and their eligibility conditions will be reviewed and rationalised.
(e) (i) To review and make recommendations on Death-cum-Retirement Gratuity (DCRG) for employees covered under National Pension System (NPS) and Unified Pension Scheme (UPS).
(ii) Review of gratuity and pension even for those employees who are not covered under NPS/UPS.
Focus on economic balance
While formulating its recommendations, the 8th Pay Commission will have to take into account the economic condition of the country, fiscal discipline, financial condition of the states, and the prevailing pay structure in Public Sector Undertakings (PSUs) and the private sector.
Functioning of the Commission
The Commission will adopt an independent process for its work. It will be empowered to appoint advisors, experts, and institutional consultants. The Commission may seek necessary information and evidence from various ministries and departments. The government expects full cooperation from states, service personnel unions, and other concerned parties.
Deadline for preparing the report
The 8th Pay Commission will submit its final recommendations within 18 months from its formation. If necessary, the Commission may also submit intermediate reports. The 8th Central Pay Commission will be headquartered in New Delhi. Overall, the formation of the 8th Pay Commission has once again raised the hopes of approximately 5 million central government employees and 6.8 million pensioners. Following the Commission’s recommendations, the salary structure of government employees may see major changes in the next few years.
