8th pay commission: The Modi government has officially notified the 8th Pay Commission, formally initiating its work. The notification, issued by the Ministry of Finance on November 3, outlines the Commission’s structure and Terms of Reference (ToR). A three-member panel, headed by Justice Ranjana Desai, will soon begin its work. The panel will also engage with stakeholders and state representatives to discuss matters such as salary hikes, the fitment factor, and related issues.
However, the ToR makes it clear that the Commission will not only be limited to salary and pension revisions for government employees, but will also review several other monetary benefits, such as allowances, bonuses, gratuity, and performance-linked incentives. As with previous commissions, this panel will also recommend extensive salary reforms and significant changes to benefits.
Salaries, allowances, and other benefits:
The Commission will suggest changes in salaries, allowances, and other benefits, whether in cash or kind. Its goal is to make government jobs more appealing to talented young people and to encourage efficiency and responsibility in the workplace.
Bonus and Performance-Linked Incentive Scheme (PLI)
The Commission will look at the current bonus schemes and may suggest new performance-based incentives to reward employees who perform exceptionally well.
Restructuring of Allowances
Considering the terms and number of various allowances currently offered, the Commission will review their rationality and may recommend restructuring them.
Gratuity and Pension
The Death-cum-Retirement Gratuity (DCRG) for employees under the National Pension System (NPS) and Unified Pension Scheme (UPS) will be examined.
Besides this, the Commission will suggest improvements to gratuity and pension for employees who are not part of the NPS.
Who will benefit?
- Central government industrial and non-industrial staff
- Officers of the All India Services
- Armed Forces personnel
- Union Territory employees
- Staff of the Indian Audit and Accounts Department
- Members of parliamentary regulatory bodies (excluding the RBI)
- Officers and employees of the Supreme Court and High Courts in Union Territories
- Judicial officers serving under Union Territories
