8th Pay Commission: NC-JCM staff side pushes for early orders on Terms of Reference and 8th CPC formation

The 63rd meeting of the Standing Committee of the National Council-Joint Consultative Machinery (JCM) took place in April 2025. The NC-JCM discusses matters related to employee interests with the central government. Many key issues were discussed in the meeting, including the formation and Terms of Reference (ToR) for the 8th Pay Commission.

8th Pay Commission Terms of Reference (ToR)

On April 23, 2025, a representative meeting of the NC-JCM was held to discuss the essential aspects of the 8th Central Pay Commission (CPC). While the government has announced the formation of the 8th CPC, official directions regarding its Terms of Reference aren’t announced yet. Further, any formal announcement regarding the appointment of members or the chairperson of the commission hasn’t been made yet. The NC-JCM staff side pushed for early orders on the 8th CPC formation and its Terms of Reference.

A request was made to the government by the staff side to issue directions on the ToR and appointment of key members of the 8th CPC at the earliest.

The meeting also discussed various other issues related to Central Government employees.

COVID-19 DA Arrears

The staff side of the NC-JCM reiterated its demand for the payment of Dearness Allowance and Dearness Relief that were frozen during the COVID-19 period (January 2020 to June 2021). However, in a setback, the Department of Expenditure has responded that due to the continued economic impact of COVID-19 and welfare measures of the central government, payment of arrears is not feasible.

Proposal on Group Insurance

The Department of Expenditure has prepared a revised proposal for the Central Government Employees Group Insurance Scheme (CGSIS) and a copy of the proposal will be shared with the staff side for feedback.

Delay in the formation of the 8th Pay Commission

The government has issued a notification regarding the appointment of a few employees for the 8th CPC. Employees are currently concerned that the implementation of the 8th CPC will be delayed and are hoping that in case of a delay, arrears will be provided.

The 7th Pay Commission’s term will end in 2026. A new pay commission is formed every 10 years to review the salaries, pensions and other allowances of government employees. The expected date of the implementation of the 8th CPC, which is January 1, 2026, is most likely not to be delayed. If there is a delay in the final announcement, the recommendations of the 8th CPC will be implemented retrospectively from January 1, 2026. The implementation of the 8th Pay Commission will directly impact over 1.1 crore employees.