8th Central Pay Commission’s Terms of Reference Approved by Cabinet
The Union Cabinet has approved the Terms of Reference for the 8th Pay Commission, marking a crucial step for revising central government salaries.
“As you know, we had very recently given in-principle approval to set up the 8th CPC in January, and in a very short time, the 8th CPC has now been set up constitutionally,” said Union Minister Ashwini Vaishnaw. “In a short time, it was also very important for the government to set up the 8th CPC”.
Composition and duration of the 8th CPC
The 8th CPC will have a chairperson and a member secretary, and will also have one low-paid part-time member. Justice Ranjana Prakash Desai will be the chairperson, a part-time member. Professor Pulak Ghosh of IIM Bangalore has been appointed as a part-time member. Petrol Secretary Pankaj Jain has been appointed as member secretary.
The body will be required to make its recommendations within 18 months of being constituted, or will decide to make an interim report to deal with the urgent issues.
Employee Representation and Consultation
“There are approximately 50 lakh central government employees, and there have been consultations with many states as well, with most being supportive,” said Vaishnaw. Many ministries, such as Defence, Home, Railways, and the Department of Personnel and Training (DoPT), employ a large number of employees and have typically been involved in the consultations.
Timeline and Recommendations of the 8th Pay Commission
The 8th CPC would need to consider some factors, including the economic conditions for the country, fiscal prudence, and that resources would be allocated where the country needs to make investments for development and welfare schemes. The commission would also need to factor in the unfunded costs of non-contributory pension schemes and state finances as compared to the public sector and in relation to existing wages and benefits attached to some selected employees, especially in the private sector.
Interim Reporting and Flexibility
The commission would be permitted to submit interim reports on selective interests. This would enable the government to take action on important emerging considerations, while the commission goes on to consider the next steps based on its overall review. The recommendations of the 8th CPC will impact the pay structure, allowances, and pensions of millions of central government employees, as well as set the tone of future work arrangements.
For more details on the 8th Central Pay Commission, visit the Department of Personnel and Training official page.
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