The National Council-Joint Consultative Machinery (NC-JCM) is preparing for crucial discussions on salary hikes as the 8th Pay Commission looms. Although the commission has not been officially established, anticipation is high.
The Terms of Reference (ToR), which will guide the new salary structures, are expected to be approved by the central government by the end of August, according to NDTV Profit. The NC-JCM, representing central government employees, has proposed a revision in the calculation of the minimum wage. The current model, based on a three-member family unit, is considered inadequate. Instead, they advocate for a five-unit family model that includes ageing parents, reflecting both ethical duties and legal responsibilities under Indian law.
Under the existing 7th Pay Commission, the earning husband is counted as one unit, the wife as 0.8 units, and each child as 0.6 units. The proposed model aims to address the financial needs of families more comprehensively.
In addition to the family unit model, the NC-JCM has raised concerns about pay scale stagnation. The staff side of the council has called for the merger of unviable pay scales to prevent stagnation, which indirectly impacts the Modified Assured Career Progression Scheme. Specifically, they have suggested merging pay scale levels 1 with 2, 3 with 4, and 5 with 6. This restructuring is expected to streamline career progression and ensure fair compensation for employees.
Another critical issue highlighted by the employee forum is the restoration of the commuted portion of pensions after 12 years. The forum has also urged the implementation of the Parliamentary Standing Committee's recommendations for enhancing pensions every five years. These measures are seen as essential for ensuring financial security for retired employees.
Historically, the recommendations of pay commissions have taken approximately 18 months to be submitted to the government, followed by an additional three to nine months for final approval. The fiscal impact of the 8th Pay Commission is projected to be between Rs 2.4 lakh crore and Rs 3.2 lakh crore, according to a recent note by Kotak Institutional Equities.
Proposed changes
The NC-JCM serves as an official body comprising bureaucrats and employee union leaders. Its primary role is to facilitate communication between the central government and its employees, addressing their concerns effectively. The council's proactive approach in gearing up for salary hike discussions underscores its commitment to advocating for the welfare of government employees. In related developments, the decision to form the 8th Pay Commission was approved by the Union Cabinet in January.
However, the formal establishment of the panel is still pending. The delay has not deterred stakeholders, who remain optimistic about the commission's eventual formation and the subsequent salary revisions.
One of the key components of the pay commission's recommendations is the fitment factor, which serves as a multiplier for revising salaries. Under the 7th Pay Commission, the fitment factor was set at 2.57, resulting in a significant increase in the minimum salary from Rs 7,000 to Rs 18,000. While specific expectations for the 8th Pay Commission's fitment factor have not been disclosed, it remains a crucial element in the salary revision process. The NC-JCM has also emphasized the need for flexibility in the Terms of Reference. This flexibility would allow the 8th Pay Commission to address common issues faced by central government employees and pensioners, as well as specific concerns related to the Ministry of Railways and the Ministry of Defence.
The council has highlighted the risky working conditions and frequent accidental deaths of employees in these ministries, urging immediate measures for safety and compensation. Furthermore, the inclusion of Gramin Dak Sevaks (GDS) of the Postal Department and Election Commission employees in the 8th CPC's ToR has been requested. The council has also called for the extension of Children Education Allowance and Hostel Subsidy up to post-graduation and professional courses. Concerns over the Ministry of Defence's delay in finalizing recommendations on Risk Allowance have also been expressed.
The NC-JCM has urged the Department of Personnel and Training (DoPT) to issue instructions to all ministries and departments to settle pending Cadre Review Proposals and Intergrade Ratio revisions for Artisan Staff in Defence. These issues should not be delayed further under the pretext of the 8th CPC. In addition to these demands, the council has called for the merger of 50% Dearness Allowance (DA) and Dearness Relief (DR) for all benefits. The grant of Interim Relief to both employees and pensioners has also been requested. The discussions surrounding the 8th Pay Commission are not without historical precedent. Previous pay commissions have played a pivotal role in shaping the salary structures of government employees.
The 7th Pay Commission, for instance, introduced significant changes, including the implementation of the fitment factor and the revision of pay scales. These changes have had a lasting impact on the financial well-being of government employees. As the 8th Pay Commission gears up for its formation, the anticipation among central government employees is palpable. The proposed changes, including the revision of the family unit model, the merger of pay scales, and the enhancement of pensions, are expected to address longstanding concerns and improve the financial security of employees and pensioners alike.
