8th Pay Commission Update: Key Highlights from Terms of Reference Meet on 50% DA, DR

As discussions around the 8th Pay Commission gain momentum, the recent Reference Meet chaired by the Secretary of the Department of Personnel and Training (DoPT) brought significant developments. The meeting focused on various issues concerning central government employees and pensioners, with particular emphasis on Dearness Allowance (DA) and Dearness Relief (DR).

Major Concerns Raised in the Reference Meet

The National Council of the Joint Consultative Machinery (NC-JCM), representing employee unions, raised several critical issues affecting government employees, particularly those in the railways and defence sectors. Some of the key demands included:

• Accidental deaths in railways and defence: Frequent accidental deaths among employees in these sectors were highlighted, urging immediate measures for safety and compensation.
• Revision of family unit size for minimum wage: The staff side proposed considering a five-member family unit instead of three when determining the minimum wage, aligning with The Maintenance and Welfare of Parents and Senior Citizen Act 2022.
• Decent and dignified living wage: The demand for fair wage revision was backed by considerations of modern living standards and nutritional requirements.
• Restoration of the old pension scheme: A strong push was made for reviving the non-contributory pension scheme, ensuring financial security for retirees.

Proposed Changes in Allowances and Benefits

• 50% DA and DR merger: A key demand was merging Dearness Allowance (DA) and Dearness Relief (DR) at 50% for all benefits, ensuring better financial stability for employees and pensioners.
• Interim relief: The proposal included granting immediate financial relief to employees and pensioners ahead of the 8th Pay Commission implementation.
• Children education allowance and hostel subsidy: An extension of these benefits up to post-graduation and professional courses was suggested.
• Risk allowance implementation: The committee emphasised the need to implement pending Risk Allowance recommendations and exempt Running Allowance from income tax.

Structural and Policy Reforms

• Inclusion of GDS and Election Commission employees: The staff side urged the inclusion of Gramin Dak Sevaks (GDS) and Election Commission employees under the 8th Pay Commission.
• Merger and upgradation of pay scales: Nonviable pay scales were proposed to be merged, while minimum entry levels for skilled employees were recommended for upgrades.
• Enhancement of Fixed Medical Allowance (FMA): The proposal sought to increase the FMA to ₹3,000 per month for pensioners.
• Review of cadre and promotional prospects: The demand for revising the intergrade ratio of artisan staff in the Defence sector was raised to improve career progression opportunities.

Government’s Response and Next Steps

The DoPT Secretary acknowledged the clarity provided by the Reference Meet and assured that further discussions would be held to refine the 8th Pay Commission Terms of Reference. Before its formal constitution, additional meetings with the Standing Committee and NC-JCM will be conducted to address unresolved concerns.

Conclusion

The 8th Pay Commission is expected to bring major changes in the pay structure, allowances, and benefits for central government employees. The recent Reference Meet shed light on key concerns, especially regarding Dearness Allowance (DA) and Dearness Relief (DR), ensuring that financial and structural reforms are prioritised. With more meetings ahead, employees and pensioners can look forward to a comprehensive and fair wage revision under the upcoming 8th Pay Commission.

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