8th Pay Commission: NC-JCM recommends DA merger, overhaul of unviable pay structures

8th Pay Commission: NC-JCM recommends DA merger, overhaul of unviable pay structures

12 Feb 2025

Ajay Joseph, Asianet Newstable

The meeting, chaired by DoPT Secretary Rachna Shah, saw representatives from the NC-JCM—a body comprising bureaucrats and employee union leaders—highlighting the rising DA, which has now crossed 50%, reaching 53% after the latest revision in October.

In a recent meeting with the Department of Personnel and Training (DoPT), the National Council of Joint Consultative Machinery (NC-JCM) urged the government to merge dearness allowance (DA) with the basic salaries of central government employees before rolling out the 8th Pay Commission.

The meeting, chaired by DoPT Secretary Rachna Shah, saw representatives from the NC-JCM—a body comprising bureaucrats and employee union leaders—highlighting the rising DA, which has now crossed 50%, reaching 53% after the latest revision in October.

Call for DA-pay merger to provide relief

Shiv Gopal Mishra, Secretary (Staff Side) of NC-JCM and General Secretary of the All India Railwaymen's Federation (AIRF), highlighted the urgency of merging DA with basic pay to alleviate financial stress on employees. "The merger should be done immediately," Mishra said.

Similarly, the council also demanded the merger of dearness relief (DR) with the basic pension for retirees, which currently stands at 53% of the basic pension.

Precedents and policy shifts

During the 5th Pay Commission (1996-2006), DA was merged with basic pay once it exceeded 50%, leading to a formal integration in 2004. However, the 6th Pay Commission (2006-2016) discontinued this practice. Although the 7th Pay Commission recommended its reinstatement, the government did not implement the proposal.

Merger of pay scales to avoid stagnation

Another major issue raised during the meeting was the need to merge "unviable pay scales" to prevent career stagnation. The NC-JCM proposed merging pay levels 1 and 2, as well as levels 3 to 6, arguing that this would address anomalies in the Modified Assured Career Progression (MACP) scheme.

Government's response

When asked about the government's stance, Mishra noted that the meeting was primarily a consultation on the terms of reference for the 8th Pay Commission. He expressed hope that DoPT Secretary Rachna Shah would forward the concerns to the Finance Ministry for further deliberation