The Central government has given an update on the much-awaited 8th Pay Commission. It said that it is “actively consulting” state governments before finalising the constitution of the panel. An official announcement is expected soon, raising hopes for lakhs of government employees across the country.
The 8th Pay Commission was announced in January this year. However, since then, there has been little progress. Employees have been waiting for the appointment of panel members and the release of the Terms of Reference (ToR), which will outline the commission’s responsibilities and scope.
Last month, representatives of the Government Employees National Confederation (GENC)—the apex body of industrial federations linked with Bharatiya Mazdoor Sangh (BMS)—met Union Minister of State for Personnel, Public Grievances, and Pensions, Jitendra Singh. The meeting discussed several key issues that have been pending for a long time. These include the delay in setting up the 8th Pay Commission, the release of 18 months’ worth of Dearness Allowance (DA) arrears that were frozen during COVID-19, and major concerns over pension schemes.
One of the central demands of employee groups is the scrapping of the National Pension System (NPS) and Unified Pension Scheme (UPS) and the restoration of the Old Pension Scheme (OPS). Employees believe that OPS offers them more security in retirement. Along with this, the delegation highlighted the need to expedite the formation of the pay panel to ensure fair salary revisions.
During the meeting, a detailed memorandum listing all major employee concerns was submitted to the Union Minister. Reports suggest that the delegation received assurances from the Minister that the announcement of the pay panel would come soon. A follow-up meeting was also held with the Pension Secretary, where the demand to restore OPS was further discussed.
Apart from the constitution of the 8th Central Pay Commission (CPC), the delegation placed several other demands before the government. These include:
Restoration of Old Pension Scheme (OPS): Employees strongly pushed for replacing the current NPS and UPS with OPS, saying the old system provides a guaranteed pension and better retirement security.
Increase in compassionate appointments: At present, only 5 per cent of vacancies are reserved for compassionate appointments, which are given to family members of employees who die during service. Employees have asked for an increase in this quota, along with a one-time relaxation to benefit more families in need.
Restoration of commuted pension earlier: Currently, commuted pension is restored after 15 years. Employees have requested that this period be reduced to 12 years to give retirees financial relief sooner.
Shortening of promotion periods: Many employees face long waiting times for promotions due to existing residency rules. The delegation asked for these periods to be shortened, so employees can move up in their careers more quickly.
Release of DA arrears: Employees demanded the release of 18 months of DA arrears that were frozen during the pandemic. They argue that this money is rightfully theirs and would provide much-needed relief.
The 8th Pay Commission is expected to look into all these issues once it is formally set up. Its recommendations will likely cover salary structures, allowances, pensions, and service conditions for central government employees.
For now, the Centre has said that discussions with state governments are in progress. Once these consultations are complete, the government is expected to give the go-ahead for constituting the commission. After the panel is formed, it will prepare detailed recommendations that will shape the future pay, pension, and service conditions of government employees for the next decade.
Employee unions have been pressing hard for quicker action, arguing that inflation and rising living costs have already reduced the real value of salaries. They believe the 8th Pay Commission is essential to ensure fair compensation for the workforce that runs the country’s administrative machinery.
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At the same time, the government has to balance employee demands with financial realities. Implementing pay commission recommendations involves significant expenditure, and the Centre, along with states, will have to plan carefully to manage these costs.
Still, the ongoing talks and ministerial assurances indicate that progress is being made. For government employees, the hope is that an official notification on the panel will be issued in the coming months, bringing clarity after months of uncertainty.
The outcome of this process will not only affect the salaries and pensions of millions of employees but also set the tone for employee welfare and public sector efficiency in the years ahead.
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