Why in the News?
The Govt. of India has officially constituted the 8th Central Pay Commission (CPC) to review and recommend revisions in the salaries, pensions, and service conditions of Central Government employees and pensioners.
About the 8th Central Pay Commission (CPC):
- Objective: To assess fiscal sustainability, pay parity with the private sector, cost of living, pension liabilities, and Centre–State financial impact.
- Announcement: Its formation was first announced in January 2025, following Cabinet’s in-principle approval for the new pay revision cycle.
- Composition:
- Chairperson– Justice Ranjana Prakash Desai (Retd.)
- Part-time Member– Prof. Pulak Ghosh (IIM Bangalore)
- Member-Secretary– Pankaj Jain (Petroleum Secretary)
- Mandate Duration: Expected to submit its report within 18 months of constitution, i.e., by mid-2026.
- Scope: Covers over 50 lakh Central employees and 68 lakh pensioners, with consultations extending to State Governments and Public Sector Undertakings (PSUs).
​ About Pay Commissions:
- Overview: They are temporary expert bodies established roughly every 10 years to revise salary structures, allowances, and pensions of Central Government employees and defence personnel.
- First Commission: Constituted in 1946, marking the beginning of India’s formal public service wage policy.
- Frequency: Eight Commissions (1946–2025), each responding to economic, social, and inflationary shifts.
- Composition: Typically includes retired judges, economists, and senior bureaucrats, ensuring multi-disciplinary expertise.
- Implementation Process: Recommendations will be reviewed by the Finance Ministry and approved by the Union Cabinet, followed by phased rollout across departments.
- Impact: Shapes public expenditure patterns, influencing State pay revisions, PSU wages, and defence outlays for the next decade.
- Notable Reforms by Past Commissions:
- 2nd CPC (1957)– Adjusted post-Independence wage inflation.
- 3rd CPC (1970)– Introduced the Dearness Allowance (DA) mechanism.
- 4th CPC (1983)– Standardised pay bands across cadres.
- 5th CPC (1994) – Enhanced pensions and streamlined hierarchies.
- 6th CPC (2006)– Introduced Pay Band + Grade Pay and MACP system.
- 7th CPC (2014–2016)– Implemented Matrix Pay Structure and Fitment Factor (2.57).
- 8th CPC (2025): Continues this decadal reform tradition, aligning pay structure with digital governance, modern workforce management, and inflation-linked fiscal stability.
| [UPSC 2014] Which of the following are the discretionary powers given to the Governor of a State? 1. Sending a report to the President of India for imposing the President’s rule 2. Appointing the Ministers 3. Reserving certain bills passed by the State Legislature for consideration of the President of India 4. Making the rules to conduct the business of the State Government Select the correct answer using the code given below: Options: (a) 1 and 2 only (b) 1 and 3 only* (c) 2, 3 and 4 only (d) 1, 2, 3 and 4 |
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