The central government on November 3 formally notified the terms of reference (ToR) for the 8th Central Pay Commission (CPC), a three-member panel headed by Justice Ranjana Desai.
Soon after the notification was issued, employees and pensioners raised concerns after examining the terms of reference and alleged that the mandate of the 8th Pay Commission was different from that of the previous 7th Pay Commission. The change has raised doubts about the fate of those who have retired or will retire before the new pay commission is introduced.
The All India Defense Employees Federation (AIDEF), a trade union for civilian employees of the country’s defense ministry, has raised several concerns about the draft terms of reference for the 8th Pay Commission, a framework that defines the scope of the pay commission and specifies the areas in which the panel must offer recommendations.
What did the AIDEF letter say?
In a letter to Finance Minister Nirmala Sitharaman, the unions said that 69 thousand central government and family pensioners have been excluded from the purview of the 8th Pay Commission.
“It is most unfortunate that 69 lakh central government pensioners and family pensioners, who have given their sweat and blood to the country for more than three decades of service, are being kept out of the reach of the 8th CPC,” the employees’ union wrote in a letter.
The union also added that pension revision is the right of pensioners and they cannot be discriminated against. “Most of them are at the end of their lives and to ignore them outright is completely unjustified,” the letter said.
What does the official ToR say?
The official notification does not specifically mention the exclusion of pensioners. It talks about the review of benefits including salaries, allowances and other facilities/benefits for the following categories of employees.
— Central Government Employees: Industrial and Non-Industrial.
— Personnel belonging to the All India Services.
— Defense Force personnel.
— Staff of union territories.
— Officers and employees of the Indian Audit and Accounts Department.
— Members of regulatory bodies (other than RBI) established under Acts of Parliament.
— Officials and employees of the Supreme Court.
— Officials and employees of the High Courts whose expenses are paid by the Union Territory.
— Judicial Officers of Subordinate Courts in Union Territories.
The ToR directs the 8th CPC to review the following:
— Death on Retirement Remuneration of employees in receipt of the State Pension Scheme (including the Single Pension Scheme) and recommendations relating thereto.
— Gratuities and pensions of employees who are not covered by the state pension system (including the unified pension system) and develop recommendations with regard to “non-funded costs of non-contributory pension systems”.
The 8th Pay Commission is expected to submit its recommendations within 18 months.
Comparison of the 7th and 8th contractual conditions for the payment of commissions
The unions said the terms of the 8th Pay Commission regarding the revision of employee benefits are “totally different” from the terms of the previous 7th Central Pay Commission.
“2.5. Develop an emoluments structure conducive to attracting talent to government services, promoting efficiency, accountability and responsibility in the work culture,” the terms of reference of the 8th CPC on emoluments read.
In view of this, the ToR of the 7th CPC stated: “To develop a framework for a remuneration structure linked to the need to attract the most suitable talents to the government services, promote efficiency, responsibility and accountability in the work culture and promote excellence in the public administration system to respond to the complex challenges of modern governance and rapid political, social, economic and technological changes with due regard to recommending an appropriate framework for training and competitiveness of stakeholders and referrals.”
AIDEF also informed the Finance Minister that the 7th Pay Commission has been asked to examine the pension structures and revision norms for retired employees before implementing its recommendations. As such a clause is absent in the terms of reference of the 8th Pay Commission, the body has urged the government to amend the framework.
She also asked the government to consider issues such as the restoration of commuted pensions after 11 years and the introduction of a 5% increase every five years after retirement, as these issues had long been outstanding. These recommendations were previously made by a parliamentary standing committee.
