8th Pay Commission: Salary revision every 5 years, 6% annual hike on Staff Side’s wishlist

As the 8th Central Pay Commission continues to gather inputs from various stakeholders, the Staff Side of the NC-JCM has suggested periodic pay revision, ideally every five years, for central government employees. They have also proposed a fixed annual hike in salary by 6%.

Sharing the reason for the above proposals in a memorandum to the 8th CPC, the Staff Side said, "There is a strong need for periodic pay revision, ideally every five years, to maintain adequacy and relevance."

The Staff Side has also proposed increasing the annual increment rate from the current 3% to 6%.

“We propose the rate of annual increment should be increased from the existing 3% to 6%. We propose the following Merger of Pay Scales and the Revised Pay Scales of 8th CPC,” they said.

Need for a sound pay structure

Amid rising cost of living and changing economic conditions, the Staff Side said, a fair and rational pay structure is essential to:

• Attract talented individuals to government service

• Retain skilled and experienced personnel

• Ensure efficiency in governance.

View on increased expenditure

Currently, the government is spending around 13% of its revenue on salaries, allowances and pension. Salary revision through the 8th CPC is expected to increase this expenditure. The Staff Side said such expenditure should be seen as an investment.

“However, such expenditure should be viewed as an investment rather than a burden because:

"Higher salaries increase purchasing power.

"Increased consumption boosts demand.

"Higher demand leads to greater tax collections.

“Thus, pay revisions contribute positively to economic growth and fiscal sustainability,” the staff side said.