Latest news with #ToR
India.com
12 hours ago
- Business
- India.com
8th Pay Commission: Reports Hint At Expected Timeline Of Implementation; Check Comparison Between 6th And 7th CPC Timeline
photoDetails english 2938407 Amidst heightened anticipation around the setting up of pay panel under the 8th Pay Commission, Terms Of Reference (ToR) and appointment of chairman and member, the government has officially responded on ToR in Parliament. Minister Of State In The Ministry Of Finance Pankaj Chaudhary responded saying that it has received suggestions from the National Council of Joint Consultative Machinery (NC-JCM), as part of the stakeholder consultation. Chaudhary added that Inputs have been sought from major stakeholders, including Ministry of Defence, Ministry of Home Affairs, Department of Personnel & Training and from States. Updated:Jul 29, 2025, 11:46 AM IST 8th Pay Commission: Expected Timeline 1 / 11 The Central Pay Commission is anticipated to be implemented later in 2026 or in the first part of 2027, according to a Business Today report that cited a Kotak projection. According to a study released by Kotak Institutional Equities said on Monday, the 8th Pay Commission will be put into effect. 8th Pay Commission Minimum Pay 2 / 11 According to the Business Today report citing the Kotak projection, the 8th Pay Commission is expected to raise the minimum pay from the current Rs 18,000 to around Rs 30,000. 8th Pay Commission Probable Fitment Factor 3 / 11 The CPC may also take into account the fitment factor of 1.8, the Kotak report said. Accordingly, the real pay hike will be approximately 13 percent, the report added. Additionally, the fiscal impact of the 8th CPC on the national exchequer is likely to be around 0.8 percent of the GDP, the Kotak report said. This amounts to an extra expenditure approximately between Rs 2.4 and Rs 3.2 lakh crore. 8th Pay Commission: ToR, Chairman Appointment Awaited 4 / 11 More than 1.2 crore central government employees and pensioners are eagerly awaiting the formation of the 8th Pay Commission which will revise their salaries and pensions. The Staff Side has appealed to the government to issue clear guidelines on the finalized ToRs of the 8th CPC at the earliest, to dispel any ambiguity and restore confidence among the workforce. The Staff Side further requested the government to clarify that the benefits of pay fixation and revision under the 8th CPC shall also be extended to all central government pensioners, thereby removing doubts and ensuring parity and fairness in treatment. 8th Pay Commission: Timelines Of 6th, 7th CPC Giving Jitters 5 / 11 Despite the government's approval on January 16, 2025, the Pay Commission has not been formally constituted. The ToR and the appointment of the chairman and other important members have also not yet been completed. The anxiety of central government employee is further accentuated by the past comparisons of timelines of 6th and 7th Pay Commissions. 7th Pay Commission Vs 8th Pay Commission Delay? 6 / 11 The 7th CPC was announced in September 2013 and its chairman and ToR were notified in February 2014. However, since the announcement of the 8th Pay Commission on January 16, 2025, the ToR of the Commission are still pending. The government has also not officially announced the appointment of the chairman and other members of the commission. This indicates a delay in the formation of the 8th CPC. 6th Pay Commission Vs 8th Pay Commission Delay? 7 / 11 6th Pay Commission was formed in October 2006. The report/recommendation was sent in March 2008 and it got approval in August 2008. The Implementation of 6th pay commission was from January 1, 2006 retrospectively. 8th Pay Commission: 1 January 2026 Expected Implementation 8 / 11 The prospects for the Commission's implementation on January 1, 2026, appear bleak. While the tenure of the 7th Pay Commission ends on 31 December 2025 and the constitution of the new Commission is in limbo. Now, comparing the timeline of 6th and the 7th pay commission the central government employees and pensioners are increasingly becoming anxious since there is no official word yet on the set up of pay panel. 8th Pay Commission: 3rd Extension Of Filling Up Of 4 Posts Of Under Secretary 9 / 11 In its latest circular, issued on 3 July 2025, DoPT has decided to extend the last date for submission of applications till 31.07.2025. This is the third extension that DoPT has proposed, thus possibly meaning that the applications from eligible candidates for these key posts in the pay panel has yet not been received yet. 8th Pay Commission: Under Secretary Post Previous Extensions 10 / 11 Earlier it DoPT had proposed to fill up the 4 posts of Under Secretary (Level 11) in the 8th Central Pay Commission (CPC) on deputation basis under the Central Staffing Scheme under D/o Expenditure. The applications were invited for the post vide circular of even number dated 22.04.2025. 8th Pay Commission: Pay, Pension Revision In Offing 11 / 11 The 8th Pay Commission will revise the pensions, allowances and salaries of central government employees and pensioners. It will also revise the Dearness Allowance as per inflation. The 8th Pay Commission benefits about 50 lakh central government employees, including defence personnel. It will also benefit around 65 lakh central government pensioners, including defence retirees.
News18
a day ago
- Business
- News18
8th Pay Commission: Minimum Basic Pay Likely Rs 30,000, Not Rs 51,000, Says New Report
Around 50 lakh central government employees and 65 lakh pensioners who were hoping for a major hike in basic pay might be in for a disappointment. A new analysis by Kotak Institutional Equities has thrown cold water on the widespread expectation that the minimum basic salary would triple under the 8th Pay Commission. (News18 Hindi) The key figure here is the fitment factor, the multiplier used to convert current salaries to the revised pay structure. While the 7th Pay Commission used a factor of 2.57, the 8th Pay Commission is now expected to apply a more conservative multiplier of 1.8. That would lift the base salary from Rs 18,000 to Rs 30,000, not the Rs 51,000 many employees were hoping for. Employees may be shocked by this new possibility, the report states bluntly. (News18 Hindi) Even this limited increase won't happen anytime soon. Though the 8th Pay Commission was formally announced in January 2025, the Terms of Reference (ToR) haven't been finalised, nor have commission members been appointed. According to Kotak's timeline, the commission's report will take 18 months, followed by another 3 to 9 months for government approval and implementation. That means employees shouldn't expect any salary revision before late 2026 or early 2027. (News18 Hindi) Despite the restrained hike, implementing the 8th Pay Commission is expected to cost the exchequer between Rs 2.4 lakh crore to Rs 3.2 lakh crore, which is 0.6% to 0.8% of GDP, according to the report. The lion's share of this benefit will go to Grade C employees, who make up 90% of the central government workforce. (News18 Hindi) Historically, pay commission hikes have boosted sectors like automobiles, consumer goods, and real estate. This time too, a similar trend is expected. Kotak projects that the revised salaries could drive additional savings of Rs 1 to Rs 1.5 lakh crore, with increased investments in stock markets, bank deposits, and physical assets. (News18 Hindi) On July 21, 2025, Minister of State for Finance Pankaj Chaudhary confirmed in Parliament that the groundwork for the 8th Pay Commission has begun. He said the ministry has already sought inputs from key departments including Defence, Home Affairs, Personnel, and various states. (News18 Hindi) The Centre typically sets up a new pay commission every decade to adjust public sector salaries and pensions in line with inflation and rising costs. The 7th Pay Commission came into effect in 2016. The 8th will likely land right on cue, but with far more tempered expectations. (News18 Hindi)
Time of India
a day ago
- Business
- Time of India
8th Pay Commission: What could be the expected salary hike, fitment factor, and implementation date? Here's what a new report says
8th Pay Commission: Expected salary revisions 8th Pay Commission: Implementation expected to follow past timelines Impact on government finances and GDP Live Events You Might Also Like: 8th Pay Commission good news: Govt starts discussions on salary hike; check expected basic pay and dearness allowance Previous pay commission effects Consultations underway You Might Also Like: Why 8th Pay Commission may end up disappointing government employees and pensioners 8th Pay Commission: Expected salary hike Dearness allowance mechanism to remain in place Previous CPC set benchmark for revisions (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel The 8th Central Pay Commission (CPC) is expected to be implemented by late 2026 or early 2027, according to a report by Kotak Institutional Equities. The government has announced the commission in January 2025 but is yet to finalise the Terms of Reference (ToR) or appoint its estimates that the minimum salary could rise from ₹18,000 to about ₹30,000, reflecting a fitment factor of around 1.8. This would lead to a real increase of nearly 13% in pay for central government employees affected by the revision. A total of around 3.3 million central employees, mostly from Grade C category, are likely to benefit the most. Grade C workers make up nearly 90% of the central government timeline for the 8th CPC is expected to follow the pattern of previous commissions. The 6th and 7th CPCs took around 1.5 years to complete their reports. After that, the government took another 3 to 9 months to implement the recommendations post Cabinet approval. Kotak said, "The 8th CPC is unlikely to be implemented before late 2026 or early 2027."The estimated financial burden of the new pay commission could range between ₹2.4 lakh crore and ₹3.2 lakh crore, or about 0.6–0.8% of India's GDP. While this could add pressure to the fiscal budget, past pay revisions have shown temporary positive effects on the noted that the pay hike may give a brief push to consumption and savings. 'We expect the 8th CPC to provide a temporary boost to consumption and savings,' the firm said. The impact is expected to be visible in sectors like automobiles and consumer staples. However, such gains have typically been firm also said that the revised pay structure may encourage more savings in both physical and financial assets such as equities and bank deposits. Kotak estimates that the pay revision could lead to incremental savings of ₹1–1.5 lakh last major revision, the 7th CPC, combined with the One Rank One Pension scheme, added about two percentage points to India's GDP growth in FY17. While similar growth is not guaranteed this time, Kotak believes the overall economic impact will still be significant, particularly in the short government has not shared further updates on the 8th CPC beyond its announcement in January 2025. Until the ToR and commission members are finalised, the process remains in its early per a report last week, the Ministry of Finance has started holding early consultations with major stakeholders to set up the 8th Central Pay Commission. These talks include departments such as Defence, Home Affairs, and Personnel and Training, along with state governments. These discussions are intended to collect feedback ahead of the official notification of the a written reply in Parliament, Minister of State for Finance Pankaj Chaudhary said, 'Inputs have been sought from major stakeholders, including Ministry of Defence, Ministry of Home Affairs, Department of Personnel & Training and from states.'Chaudhary also told the Lok Sabha that the appointment of the chairperson and other commission members will take place once the 8th CPC is formally constituted. No appointments have been made so upcoming CPC may propose a fitment factor of 1.8 for salary revision. This would be lower than the 2.57 factor adopted in the 7th Pay Commission. While a fitment factor of 1.8 implies an 80% increase in the basic pay structure, the real impact on net salary would be reduced because the existing dearness allowance (DA)—currently around 55%—would reset to zero under the new the fitment factor of 1.8 is accepted, the minimum basic salary may increase from ₹18,000 to around ₹32,000. But after adjusting for current allowances, the actual increment would amount to an estimated 13%. For example, the present ₹18,000 base salary includes a DA component of about ₹9,900. Similarly, a base salary of ₹50,000 may be revised to ₹90,000, but since DA of around ₹27,500 is already included, the effective rise would be twice-yearly revision of dearness allowance is expected to continue under the 8th CPC. The DA, based on the Consumer Price Index for Industrial Workers, protects salaries and pensions from inflation. At present, revisions take place in January and July. By the time the new pay structure is introduced, the DA is projected to exceed 60% of the existing basic 7th Pay Commission, headed by Justice A K Mathur, recommended an overall rise of 23.55% in salaries, pensions, and allowances. The government approved most of the proposals with effect from January 1, 2016. The structure and impact of the 8th CPC are likely to be shaped by current economic conditions and inflation, but will follow broadly the same process, beginning with the collection of inputs from relevant departments and states.
India.com
5 days ago
- Business
- India.com
8th Pay Commission BIG update: Modi govt finally answers question regarding Terms Of Reference; says...
Representational Image 8th Pay Commission update: In a major update for central government employees eagerly awaiting the implementation of the 8th Pay Commission, the Union government addressed questions regarding the Terms Of Reference (ToR) during the ongoing monsoon session of the Parliament. What did the government say on ToR? Replying to a query on the 8th Pay Commission, Pankaj Chaudhary, Minister of State in the Union Ministry Of Finance, revealed that the ministry has received suggestions from the National Council of Joint Consultative Machinery (NC-JCM), as part of the stakeholder consultation. The minister added that additional inputs have been sought from major stakeholders, including Ministry of Defence, Ministry of Home Affairs, Department of Personnel & Training and from the States. He was responding to a question from BJP MP Bhubaneswar Kalita, who had asked whether the government had received suggestions regarding the setting up of ToR for 8th Pay Commission. Member of Parliament, Bhubaneswar Kalita had asked the government if the latter has received suggestions regarding setting up the terms of reference. Here are some suggestions received for 8th Pay Commission ToR: According to the government, the ToR suggestions include examining the existing pay structure, allowances and other benefits /facilities, retirement benefits like pension / gratuity and other terminals benefits etc. to the following categories of employees:- Central Government employees (industrial and non-industrial) Personnel belonging to All India services Defence Forces and Para Military Forces personnel Grameen Dak Sewaks of the Postal Department Personnel of Union Territories Officers and employees of the Indian Audit and Accounts Department Officers and employees of the Supreme Court Members of Regulatory bodies (excluding RBI) set up under Act of Parliament Employees of Central Government Autonomous Bodies and Institutions Additionally, the Staff Side NC(JCM) has suggested that the 8th Pay Commission should consider the merger of non-viable Pay scales such as Level 1 with Level 2, Level 3 with Level 4 and Level 5 with Level 6. It also suggested that 7th CPC Anomalies, which it had raised in the Anomaly Committee meetings and JCM meetings, should be settled in the ToR. When will 8th Pay Commission be implemented? If we go by previous implementation of previous pay commissions, it usually takes about 18 to 24 months for the government to implement the recommendations. Thus, its unlikely that 8th Pay Commission would be implemented before 2027.
India.com
6 days ago
- Business
- India.com
8th Pay Commission: Govt Officially Responds To Question Regarding Terms Of Reference; Acknowledges That...
photoDetails english 2936007 The 7th CPC was announced in September 2013 and its chairman and ToR were notified in February 2014. However, since the announcement of the 8th Pay Commission on January 16, 2025, the ToR of the Commission are still pending, causing a lot of anxiety among central government employees. The Ministry of Finance has in a written reply to Rajya Sabha, responded to questions regarding the ToR. Read On. Updated:Jul 24, 2025, 09:53 AM IST 8th Pay Commission: Govt Responds On ToR 1 / 9 Amidst heightened anticipation around the setting up of pay panel under the 8th Pay Commission, Terms Of Reference (ToR) and appointment of chairman and member, the government has officially responded on ToR in Parliament. 8th Pay Commission: Question On ToR 2 / 9 Member of Parliament, Bhubaneswar Kalita had asked the government if the latter has received suggestions regarding setting up the terms of reference. 8th Pay Commission: ToR Suggestion By NC-JCM And Govt Consideration 3 / 9 Kalita asked: (a) whether Government has received any suggestion from the National Council of Joint Consultative Machinery (NC-JCM) for framing the terms of reference for Eighth Central Pay Commission, if so, the main suggestions of the council; (b) whether these suggestions are being considered by Government; (c) whether Government is planning to involve all stakeholders in the Commission; and (d) if so, the details thereof, if not, the reasons therefor? 8th Pay Commission: Finance Ministry Acknowledges Receiving Suggestion On ToR 4 / 9 Minister Of State In The Ministry Of Finance Pankaj Chaudhary responded saying that it has received suggestions from the National Council of Joint Consultative Machinery (NC-JCM), as part of the stakeholder consultation. Chaudhary added that Inputs have been sought from major stakeholders, including Ministry of Defence, Ministry of Home Affairs, Department of Personnel & Training and from States. Terms of Reference for 8th CPC forwarded by Secretary Staff Side NC(JCM) 5 / 9 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. 8th Pay Commission: Suggestion For merger of non-viable Pay scales 6 / 9 Suggestions were also received that the 8 CPC should consider the merger of non-viable Pay scales such as Level with Level — 2 and Level — 3 with Level — 4 and Level — 5 with Level — 6. Staff Side NC(JCM) also suggested govt to settle the various 7th CPC Anomalies which the Staff Side raised in the Anomaly Committee meetings and JCM meetings, among major ToR demands. 8th Pay Commission: 3rd extension for 8th CPC Posts 7 / 9 Meanwhile, DoPT has decided to extend the last date for submission of applications till 31.07.2025. This is the third extension that DoPT has proposed, thus possibly meaning that the applications from eligible candidates for these key posts in the pay panel has yet not been received yet. 8th Pay Commission: 4 posts of Under Secretary to be filled 8 / 9 Earlier it DoPT had proposed to fill up the 4 posts of Under Secretary (Level 11) in the 8th Central Pay Commission (CPC) on deputation basis under the Central Staffing Scheme under D/o Expenditure. The applications were invited for the post vide circular of even number dated 22.04.2025. 8th Pay Commission: Delay causing widespread speculation and uncertainty 9 / 9 According to the Staff Side, the continued delay in the formal issuance of the ToRs has led to widespread speculation and uncertainty among central government employees and pensioners. It further stated that in the absence of clear and timely communication, apprehensions are growing among employees about the credibility of the announcement regarding the setting up of the 8th CPC. Many fear whether this move is a genuine administrative initiative or otherwise.
