8th Pay Commission ToR outlines salary, DA, pension and allowance changes: Check full list

The Terms of Reference (ToR) of the 8th Pay Commission outline what central government employees and pensioners can expect from its final recommendations. Approved by the Union Cabinet last year, the ToR defines the commission's scope of work and specifies the areas on which it must make recommendations.

The 8th Central Pay Commission (8th CPC) is expected to benefit more than 1 crore people, including around 50 lakh central government employees and nearly 65 lakh pensioners, including defence and railway personnel and retirees.

Notably, central government employees and armed forces personnel account for about 0.7% of India's 60-crore workforce and nearly 9% of the country's formal sector.

Here's a look at the key recommendations the 8th CPC is expected to make, covering salaries and pensions, allowances and performance-linked incentives.

8th Pay Commission: What are the Terms of Service?

The 8th Pay Commission will be a temporary body comprising a Chairperson, one part-time Member and a Member-Secretary. It has been asked to submit its recommendations within 18 months of its constitution, although it may submit interim reports if required.

While framing its recommendations, the commission has been asked to consider:

• The economic conditions in the country and the need for fiscal prudence;
• The need to ensure that adequate resources are available for developmental expenditure and welfare measures;
• The unfunded cost of non-contributory pension schemes;
• The likely impact of the recommendations on the finances of the State Governments, which usually adopt the recommendations with some modifications, and
• The prevailing emolument structure, benefits and working conditions available to employees of Central Public Sector Undertakings and the private sector.

Here's what recommendations can be expected: Full list

Examine and recommend changes that are desirable and feasible in the emoluments, including:

• Pay (usually includes salary structure, pay matrix),
• Allowances (usually include Dearness Allowance, Dearness Relief, HRA),
• Other facilities/benefits, in cash or kind (includes increment, promotions, etc.),
• Having regard to rationalisation,
• Contemporary functional requirements and
• Specialised needs

To work out an emolument structure conducive to attracting talent to Government service, promoting:

• Efficiency,
• Accountability and
• Responsibility in the work culture.

To examine the existing schemes of bonus with a view to:

• Improving performance and productivity, and
• Make recommendations on the general principles, financial parameters, productivity and performance-linked parameters for an appropriate incentive scheme
• To reward excellence in productivity and performance.

To review the existing allowances and conditions of their admissibility and recommend

• Rationalisation keeping in view the multiplicity of allowances.

For pensioners, to review

• The Death-cum-Retirement Gratuity of employees borne on the National Pension System (including Unified Pension Scheme) and make recommendations;
• The Death-cum-Retirement Gratuity and pensions of employees not borne on the NPS (including UPS), and make recommendations.

Which government employees are eligible for 8th CPC recommendations?

This will be for various government departments, agencies and services in respect of the following categories of employees:

• Central Government employees — industrial and non-industrial;
• Personnel belonging to the All India Services;
• Personnel belonging to the Defence Forces;
• Personnel of the Union Territories;
• Officers and employees of the Indian Audit and Accounts Department;
• Members of the regulatory bodies (excluding the RBI) set up under the Acts of Parliament;
• Officers and employees of the Supreme Court;
• Officers and employees of the High Courts whose expenditure is borne by the Union Territories;
• Judicial officers of the subordinate courts in the Union Territories.