8th Pay Commission: Staff Side proposes professional tax exemption for central govt employees

Not just private sector employees, but even the Central Government employees pay professional tax to state governments. This tax is deducted directly from employees' salaries. As the 8th Central Pay Commission (CPC) continues to collect relevant data for preparing its final report, the Staff Side of the NC-JCM has proposed that the pay panel should consider removing professional tax.

"We also propose that all Central Government employees may be exempted from Professional Tax being recovered by the State Governments from the salary of the employees," the Staff Side said in their memorandum to the 8th CPC.

"Already the employees are subjected to payment of Income Tax and GST etc. Over and above this the Central Government employees are burdened with the recovery of Professional Tax. 8th CPC may kindly recommend an exemption of Professional Tax from the Wages of the employees," it added.

Apart from professional tax exemption, the Staff Side has also recommended the revision of pay structure to the following with effect from January 1, 2026:

• Extension of revised pay structures to Central Government Pensioners who are retired before 1/1/2026

• Extension of revised pay structures to autonomous bodies approved by Parliament and other Autonomous Institutions of Government of India and Union Territories (effective 1 January 2026)

• Revision of Gramin Dak Sevaks (GDS) pay scales to strengthen rural services.

• BSNL & DoT Pensioners

"A fair, transparent, and dynamic pay structure, supported by a permanent pay review mechanism, is essential to ensure motivated, efficient, and accountable public service," the Staff Side said.

Data collection deadline extended

The 8th CPC recently extended the timeline for submission of requisite data through its data collection portal.

"As various Ministries, Departments and Union Territories have been unable to complete the submission of the requisite data within the stipulated timeline, it has been decided to extend the last date for submission of data through the Data Collection Portal up to 31st July, 2026," the 8th CPC said.

"All Nodal Officers are requested to ensure that the requisite information is uploaded on the Data Collection Portal within the extended timeline. It may also be noted that physical copies, e-mails, Excel sheets, PDF files, or data submitted through any mode other than the Data Collection Portal need not be furnished to the Commission," it added.