Summary of this article
Union Cabinet approves the Terms of Reference for the 8th Central Pay.
Ashwini Vaishnaw said the ToR has been finalised after consultations with various ministries.
CPC ensures that the present and past workforce remains safeguarded.
Today, the Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the Terms of Reference (ToR) for the 8th Central Pay Commission. As per the official release, Union Minister Ashwini Vaishnaw has announced that the Centre has approved the implementation of the 8th Pay Commission.
Setting up Pay Commissions takes a lot of time due to a lot of reviewing and revising. This is to ensure that there are no loopholes that affect the people. The panel is set to revise allowances, pensions and salaries of present and retired central government employees, which helps them combat inflation and day-to-day financial challenges.
Ashwini Vaishnaw has announced that the ToR has been finalised after consultations with various ministries, state governments, and the staff of the joint Consultative machinery. The Commission is asked to present its recommendations within 18 months, and it can provide interim reports if some proposals are finalised before then. This is a big task as it covers 50 lakh central government employees and 69 lakh pensioners, including defence services personnel.
Who is this chaired by?
The Central Pay Commission will function as a temporary body comprising of Justice Ranjana Prakash Desai who is the chairperson of this committee. He is a retired Supreme Court judge. Pankaj Jain is the Member-Secretary, who is also the Secretary at Ministry of Petroleum and Natural Gas. A part-time member is Pulak Ghosh, who is a professor at IIM Bangalore.
Terms of Service
The 8th Pay Commission is a temporary body, led by a three-person membership.
It is asked to give recommendations within 18 months of its constitution.
If necessary, the body can send interim reports on any matter as and when the recommendations are finalised.
What are the recommendations to be kept in mind?
The Commission is asked to focus on the following things to make sure that the 8th Pay Commission is working in favour of the pensioners and employees.
The economic conditions in the country, to make sure that there are no gaps or loopholes in the Commission.
The costs of non-contributory pension schemes
The impact of recommendations on the finances of the State Governments, which mostly adopt recommendations with some minor modifications.
Hence, the 8th Pay Commission holds significant importance. It is not just a relief for employees but also for people who are no longer in the workforce. The CPC ensures that the present and past workforce remains safeguarded from economic tensions and changes.
