8th Pay Commission talks gain momentum, key meeting on Feb 10 to discuss terms of reference

The much-anticipated 8th Pay Commission process has gained momentum with the Department of Personnel and Training (DoPT) scheduling a key meeting with the Staff Side members of the Standing Committee of the National Council (JCM) on February 10, 2025.

According to an official communication from the DoPT, the meeting will focus on discussions related to the terms of reference (ToR) for the 8th Pay Commission, following demands from employee representatives.

“I am directed to...inform you that a meeting with Staff Side members of Standing Committee is scheduled to be held on 10 February, 2025 (Monday) at 12:00 Noon...under the chairpersonship of Secretary(P),” the letter from DoPT read.

The National Council (Staff Side) JCM, led by Secretary Shiva Gopal Mishra, has scheduled an internal meeting on the same day to strategise ahead of the official discussions.

Referring to the meeting of the Standing Committee of the NC-JCM, Mishra, in a letter, said, "It has therefore been decided that the Staff Side meeting will be held on same day i. e. 10th February 2025 at 9.30 am in the Secretariat of the National Council (Staff Side) - JCM, 13-C, Ferozshah Road, New Delhi, to internal discussion."

The Union government announced the formation of the 8th Pay Commission last month, a move expected to benefit over 49 lakh central government employees and nearly 65 lakh pensioners. Information and Broadcasting Minister Ashwini Vaishnaw stated that the government will soon appoint the chairman and two members of the commission. Consultations will also be held with central and state governments, as well as other stakeholders, to finalide the commission’s framework.

Prime Minister Narendra Modi, in a post on X, highlighted that the Cabinet’s decision to establish the 8th Pay Commission will "improve the quality of life and give a boost to consumption."

The Pay Commission’s recommendations traditionally influence not just central government employees but also serve as a benchmark for state governments.

The staff side’s comprehensive suggestions for the ToR include examining the existing pay structure, allowances, and retirement benefits, ensuring a decent and dignified living wage, and addressing anomalies from the 7th Pay Commission.

• Merging non-viable pay scales.
• Providing interim relief and merging dearness allowance with basic pay.
• Reviewing the Modified Assured Career Progression (MACP) scheme.
• Enhancing retirement benefits, including pension revisions and family pension.
• Restoring the defined, non-contributory pension scheme for employees recruited after January 1, 2004.

The NC-JCM has stressed the need for risk and hardship allowances for railway and defense civilian employees, improved medical facilities under the CGHS, and revised education allowances up to the postgraduate level.

Expenditure Secretary Manoj Govil recently said that the Budget 2025-26 has not accounted for any financial impact arising from the implementation of the 8th Pay Commission’s recommendations.

“Previous commissions have taken more than one year to present the report. If the Commission is set up even in the month of March 2025, the report should come in by March 2026, though it could take less than a year. So, for FY26 we don’t see any impact of the 8th Pay Commission,” Moneycontrol quoted Govil as saying.

Govil also noted that any recommendations accepted in FY27 could be retrospectively effective from January 1, 2026, with the financial burden reflected in the 2026-27 fiscal year.

The appointment of the commission’s chairman and members, as well as the finalisation of the ToR, will be crucial next steps. The finance ministry has indicated that these decisions will be made "in due course."