Terms of Reference (TOR) of 8th CPC by National Council JCM

The core areas highlighted in the Terms of Reference for the 8th Central Pay Commission (CPC) can be summarized into the following key points:

• Pay Structure and Benefits: Examine the existing pay structure, allowances, and benefits for various categories of employees, including Central Government employees, Defence Forces, and Railway employees.
• Minimum Wage: Determine the minimum wage as a "Decent and dignified Living Wage" based on the 15th Indian Labour Conference recommendations and Supreme Court judgments.
• Pay Scales and Promotions: Consider merging non-viable pay scales and recommend a minimum of five promotions in service with a defined hierarchical structure.
• Retirement Benefits: Review and recommend improvements to existing retirement benefits, including pension, gratuity, and family pension.
• Healthcare and Welfare: Recommend methods for providing cashless medical facilities and review Children Education Allowance and Hostel Subsidy.
• Risk and Hardship Allowance: Consider payment of Risk and Hardship Allowance to Railway employees and Defence Civilian Employees working in hazardous conditions.

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Shiva Gopal Mishra Secretary

No.NC-JCM-2025/8th CPC

The Dy. Secretary -JCA,

&Member Secretary - JCM,

Department of Personnel & Training

North Block,New Delhi Ph.: 23382286

National Council (Staff Side)

Joint Consultative Machinery for Central Government Employees

13-C, Ferozshah Road, New Delhi - 110001 E-Mail: nc.jcm.np@gmail.com February 3, 2025

Dear Sir,

In reference to your office letter No. 6/1/2025-JCA dated 23/01/2025, we are forwarding herewith Terms of References of 8th CPC from Staff Side of the National Council (JCM).

It is requested that Standing Committee Meeting of the NC-JCM should also be called for discussions the Terms of Reference of the 8th CPC in detail before finalising it.

Yours faithfully,

(Shiva Gopal Mishra) Secretary

Term of Reference for 8th CPC to be forwarded by Secretary Staff Side NC (JCM)

A. To examine the existing structure of pay, Allowances and other benefits / facilities, retirement benefits like pension/ gratuity and other terminals benefits etc. to the following categories of employees:-

1 Central Government employees-industrial and non industrial.

2 Personnel belonging to All India services.

3 Personnel belonging to the Defence Forces and Para Military Forces.

4 Personnel called as Grameen Dak Sewaks belonging to the Postal Department.

5 Personnel of Union Territories

6 Officers and employees of the Indian Audit and Accounts Department.

7 Officers and employees of the Supreme Court.

8 Members of Regulatory bodies (excluding RBI) set up under Act of Parliament.

9. Employees of Central Government Autonomous Bodies and Institutions

B. To work out the comprehensive revised pay packet for the categories of Central Government Employees mentioned in (A)above as on 1.1.2026.

C. The Commission will determine the Pay structure, benefits, facilities, retirement benefits, welfare matters etc taking in to account to provide the minimum wage as a " Decent and dignified Living Wage" with reference to the recommendation of the 15th Indian Labour Conference (1957 with modifications in the Dr. Aykroyd formula considering the developments and life requirements which has undergone changes in last 65 years and also the various Judgments of Hon'ble Supreme Court Judgments on fixing the minimum wages as on 1.1.2026. The Commission also consider to increase the consumption units from 03 family units to 3.6 family units as recommended by an expert committee constituted by Ministry of Labour and Employment to determine the National Minimum Wage Policy in the year 2019.

D. The 8th CPC should consider the merger of non-viable Pay scales such as Level 1 with Level - 2 and Level- 3 with Level - 4 and Level - 5 with Level -

E. 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.

F. To determine the Interim Relief to be sanctioned immediately to the Central Government employees and pensioners mentioned in (A) above.

G. To determine the percentage of Dearness Allowance / Dearness Relief immediately to be merged with Pay & Pension.

H. To settle the various 7th CPC Anomalies which the Staff Side raised in the Anomaly Committee meetings and JCM meetings.

I. To Workout the improvements needed to the existing retirement benefits like pension, Death cum retirement Gratuity, Family pension, restoration of commuted portion of pension after 12 years, implementation of Parliamentary Standing Committee recommendations for enhancement of pension after every 5 years, parity amongst past, future pensioners

J. To review and to restore the defined and non contributory Pension Scheme Under CCS (Pension Rules) 1972 (Now 2021) to the Central Government employees recruited on or after 1/1/2004.

K. To recommend the parliamentary Standing Committee recommendation on CGHS related matter FMA and to recommend methods for providing

cashless / hassle-free Medical facilities to the employees and Pensioners including Postal Pensioners.

L. To review and recommend Children Education Allowance and Hostel Subsidy upto the Post Graduation Level.

M. To review and recommend introduction of such advances which are required in the current circumstance and also to restore the advance which are abolished.

N. To consider Payment of Risk and Hardship Allowance to all the categories of Railway employees in the Indian Railways, considering the Risk and Hardship involved in the nature of duties of the Railway employees who work round the clock on all 365 days.

O. To consider the highly, perennial, risky and hazardous working conditions under which the Defence Civilian Employees involved in Manufacturing Arms, Ammunitions, Chemicals, Explosives & Acids etc., and also in its storage and to recommend a Special Risk Allowance, Insurance Coverage, Compensation etc.,.