NC-JCM Demands Immediate Formation of 8th Central Pay Commission

The National Council (Staff Side) of the Joint Consultative Machinery (NC-JCM) has officially requested the government to immediately constitute the 8th Central Pay Commission (CPC) to revise the pay, allowances, and pensions of Central Government employees and pensioners. This appeal was made in letters addressed to the Cabinet Secretary and key government authorities, emphasizing the urgency of the matter as the next revision is due on January 1, 2026.

A Decade-Long Wait for Pay Revision

Since the 4th Pay Commission in 1986, pay and pension revisions for Central Government employees have adhered to a 10-year cycle. The letter draws attention to the fact that the 7th CPC was constituted on February 28, 2014, almost two years before its implementation in January 2016. The NC-JCM urged the government to follow the same timeline for the 8th CPC, considering that only a year remains before the next revision is due.

The letter further emphasized that the staff side had already requested the formation of the 8th CPC in June 2024, but no positive response has been received. Any further delays, it argued, would be unjustified given the considerable time required for deliberations and implementation of the Commission’s recommendations.

Concerns Raised by the NC-JCM

The letters underscore several issues that necessitate the timely formation of the 8th CPC:

1. Fitment Factor Disparities: During the 7th CPC, the staff side demanded a minimum pay of ₹26,000, based on scientific formulas like the ILC norms and Dr. Aykroyd Formula. However, the government approved only ₹18,000 with a fitment factor of 2.57, far below the requested 3.68.
2. Inflation and Price Rise: The NC-JCM pointed out that inflation remains in the range of 4–7%, with an average of 5.5%, significantly impacting the purchasing power of employees. Meanwhile, the retail prices of essential commodities have surged by over 80% since 2016.
3. Dearness Allowance Gap: While the Dearness Allowance (DA) as of July 1, 2023, stood at 46%, it falls short of covering the actual price increases. The DA is projected to cross 50% by January 2024, further justifying the need for immediate revisions.
4. Revenue Growth: The government’s revenue collection has more than doubled since 2015, with gross personal income tax collections increasing by 24.23% in FY 2022-23. This indicates an improved fiscal capacity to address employee concerns.
5. Vacancies and Workload: Over the last decade, the number of Central Government employees has decreased by approximately 10 lakh, leading to increased workloads for existing staff.

Call to Reform the Pay Revision Process

The NC-JCM also urged the government to consider periodic pay matrix revisions based on inflation, eliminating the need to wait for a decade-long interval. Referring to past recommendations, the council suggested adopting the Dr. Aykroyd Formula, which factors in the prices of essential commodities reviewed by the Labour Bureau.

Concerns Over the National Pension System (NPS)

Another pressing issue highlighted was the dissatisfaction with the National Pension System (NPS). Over 20 lakh Central Government employees governed by the NPS contribute 10% of their basic pay and DA, significantly reducing their take-home salaries. The NC-JCM reiterated its demand to replace the NPS with the CCS (Pension) Rules, 1972, ensuring greater financial security for post-2004 recruits.

Time for Immediate Action

The NC-JCM’s letters stress the critical need for the government to address these issues through constructive dialogue. The council emphasized that timely formation of the 8th Central Pay Commission is essential not only to meet the expectations of employees but also to attract and retain talent in government service. With just over a year remaining until the next revision date, the staff side has urged immediate action from the government.

Read the original letter below: