8th Pay Commission: Government Confirms NC-JCM Suggestions

The Ministry of Finance has confirmed in the Rajya Sabha that suggestions from the National Council of Joint Consultative Machinery (NC-JCM) have been received for framing the Terms of Reference (ToR) for the Eighth Central Pay Commission (8th CPC). The statement was made in response to an unstarred question (No. 223) raised by Shri Bhubaneswar Kalita.

Key Points from the Government’s Response
Minister of State in the Ministry of Finance, Shri Pankaj Chaudhary, stated:

A copy of the suggestions from NC-JCM, received as part of stakeholder consultations, has been enclosed with the official response.
Inputs have been sought from major stakeholders, including the Ministry of Defence, Ministry of Home Affairs, Department of Personnel & Training, and various State Governments.

Highlights of NC-JCM’s Suggestions for 8th CPC

The NC-JCM has put forward a comprehensive set of recommendations for the 8th CPC, focusing on pay structure, allowances, retirement benefits, and welfare measures for a wide range of central government employees. Below are the key proposals:

Scope of Employees Covered

The recommendations propose examining pay, allowances, and benefits for:

Central government employees (industrial and non-industrial).
All India Services personnel.
Defence Forces and Para-Military Forces personnel.
Grameen Dak Sewaks of the Postal Department.
Union Territory staff.
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 an Act of Parliament.
Employees of central government autonomous bodies and institutions.

Main Recommendations

Revised Pay Packet:
Prepare a revised pay structure for all categories of employees as on 1 January 2026.
Minimum Wage:
Ensure that pay is aligned with the concept of a “decent and dignified living wage” in line with the 15th Indian Labour Conference (1957), with modifications based on Dr. Aykroyd’s formula and subsequent developments. It also suggests increasing the consumption units from 3 to 3.6, as recommended by the Ministry of Labour’s 2019 expert committee on National Minimum Wage.
Pay Scale Merger:
Merge certain non-viable pay levels such as Level-1 with Level-2, Level-3 with Level-4, and Level-5 with Level-6.
MACP and Promotions:
Resolve existing anomalies in the Modified Assured Career Progression (MACP) scheme, ensuring a minimum of three promotions in a well-defined hierarchical structure.
Interim Relief & DA Merger:
Recommend interim relief and merger of Dearness Allowance (DA)/Dearness Relief (DR) with basic pay and pension.
Retirement Benefits:
- Address anomalies from the 7th CPC regarding pensions and gratuities.
- Enhance pension structures, including restoration of commuted pension after 12 years.
- Implement periodic pension revisions every five years to ensure parity between past and future pensioners.
Defined Pension Scheme:
Review and restore the defined and non-contributory pension scheme under CCS (Pension) Rules, 1972 (now 2021) for employees recruited after 01.01.2004.
Medical Facilities:
Recommend cashless and hassle-free CGHS facilities, enhancement of Fixed Medical Allowance (FMA), and better medical coverage for employees and pensioners, including postal pensioners.
Allowances & Advances:
- Review Children Education Allowance and Hostel Subsidy up to post-graduation level.
- Reintroduce abolished advances and introduce new ones as per current needs.
Risk & Hardship Allowances:
- Grant Risk and Hardship Allowance to all categories of Indian Railways employees.
- Provide special risk allowance, insurance, and compensation for Defence civilian employees handling hazardous materials like arms, ammunition, chemicals, and explosives.

Next Steps

The government has indicated that consultations with all major stakeholders are ongoing. Further announcements on the formation of the 8th CPC and its finalized Terms of Reference are expected in due course.

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