The Union Cabinet has approved the formation of the 8th Pay Commission, a significant move that will impact the salary structure, allowances, and pensions of central government employees and pensioners. In this regard, the Finance Ministry has invited suggestions from various stakeholders to finalize the Terms of Reference (ToR) for the commission. Once the ToR is finalized, the government will officially constitute the 8th Central Pay Commission (CPC), which will comprise a chairman and two members.
The Pay Commission plays a crucial role in determining the financial well-being of government employees by revising salary structures, allowances, and benefits in line with economic conditions and inflation. The recommendations of the 8th CPC will be closely watched by employees, pensioners, and policymakers alike.
The key objectives of the 8th Pay Commission will likely include:
As the ToR for the 8th CPC is being formulated, it is insightful to review the Terms of Reference of the 7th CPC, which served as a foundation for the previous salary revision.
The Union Cabinet today gave its approval to the Terms of Reference of 7th Central Pay Commission (CPC) as follows:-
The Commission will make its recommendations within 18 months of the date of its constitution. It may consider, if necessary, sending interim reports on any of the matters as and when the recommendations are finalised.
The decision will result in the benefit of improved pay and allowances as well as rationalization of the pay structure in case of Central Government employees and other employees included in the scope of the 7th Central Pay Commission.
Background
Central Pay Commissions are periodically constituted to go into various issues of emoluments structure, retirement benefits and other service conditions of Central Government employees and to make recommendations on the changes required.
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