The Government of India has officially constituted the 8th Central Pay Commission (8th CPC), appointing Justice Ranjana Prakash Desai as its Chairperson, according to a Gazette Notification issued by the Department of Expenditure, Ministry of Finance.
The three-member commission will also include Prof. Pulak Ghosh as Part-Time Member and Shri Pankaj Jain as Member-Secretary. The body will review and recommend revisions in the pay structure, allowances, and benefits for Central Government employees and pensioners, including defence personnel and members of the All-India Services.
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As per the notification, the commission’s headquarters will be located in New Delhi, and it will be required to submit its recommendations within 18 months from the date of its constitution. Interim reports may be submitted if deemed necessary.
What are the terms of reference?
The commission's Terms of Reference (ToR) states that it:
Examine and suggest changes to compensation, benefits, and other monetary or in-kind benefits for a range of employee categories, including Central Government, All India Services, Defence Forces, Union Territories, and specific judicial officers.
Provide a framework for emolument that encourages efficiency, guarantees accountability in public service, and attracts and retains talent.
Examine current incentive programs to improve output and effectiveness.
Encourage the simplification of allowances and evaluate pension and gratuity benefits, including those provided by the Unified Pension Scheme and the National Pension System (NPS).
The commission’s recommendations will take into account the economic conditions of the country, fiscal prudence, and the impact on State finances, as most states follow the central pay commission’s structure with minor modifications.
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Functioning and cooperation
The 8th CPC will be free to devise its own procedure, appoint advisors and institutional experts, and call for information from relevant ministries and departments. The Ministry of Finance has expressed confidence that all state governments and service associations will extend their cooperation to the commission during its work.
Background
The pay commissions, constituted periodically since 1946, are responsible for reviewing and recommending revisions in pay scales and allowances for government employees. The 7th Pay Commission, chaired by Justice A.K. Mathur, had submitted its report in 2015, which came into effect from January 1, 2016.
