The Union Cabinet approved the 8th Pay Commission in January 2025, but the government is yet to finalize its members and Chairman. The central government sought suggestions for the Terms of Reference (ToR) of the 8th Pay Commission from the National Council of Joint Consultative Machinery (NC-JCM). The staff side of NC-JCM, in response, stated that the new Pay Commission should consider recommending a minimum of 5 promotions in service.
“To consider the existing anomalies in the MACP scheme and to recommend minimum 5 promotion in service with very defined hierarchical structure and MACP in the promotional hierarchy,” the staff side of NC-JCM stated.
The Modified Assured Career Progression (MACP) scheme guarantees that central government employees will get at least three career promotions over a 30-year service period. Currently, the central government assures every employee of three promotions at 10, 20, and 30 years of service under MACP.
8th Pay Commission: Pay Hike
Experts predict that the new Pay Commission may consider the fitment factor ranging between 1.92-2.86. Considering these fitment factors, the potential pay revisions for the central government employees and pensioners may range between 92-186%.
Here’s the possible pay revision under the 8th Pay Commission.
| Fitment Factor | Minimum Basic Salary (Rs) | Minimum Basic Pension (Rs) |
|---|---|---|
| 1.92 | 34,560 | 17,280 |
| 2 | 36,000 | 18,000 |
| 2.08 | 37,440 | 18,720 |
| 2.86 | 51,480 | 25,740 |
Key Proposals In Terms of Reference
Here are the key points in Terms of Reference:
- Pay Restructuring: Review of pay structure for all categories of employees, including merging non-viable pay scales to improve career progression.
- Minimum Wage: Determining a decent minimum wage based on the Aykroyd formula and 15th Indian Labour Conference recommendations.
- Dearness Allowance: Merging DA with basic pay and pension for better financial security.
- Retirement Benefits: Revising pension, gratuity, and family pension benefits, and restoring the defined pension scheme for employees recruited after January 1, 2004.
- Medical Benefits: Improving CGHS facilities for cashless and hassle-free medical services.
- Education Allowance: Enhancing Children’s Education Allowance and hostel subsidy up to post-graduation level.
