(MENAFN- Live Mint) The central government formally notified the Terms of Reference (ToR) for the 8th Central Pay Commission (CPC) on 3 November, which is a three-member panel headed by Justice Ranjana Desai.

Shortly after the notification was issued, employees and pensioners raised concerns after examining the ToR, claiming that the 8th Pay Commission's mandate differs from that of the previous 7th Pay Commission. This change has sparked doubts about the fate of those who retired or will retire before the new pay commission's implementation.

The All India Defence Employees Federation (AIDEF), a trade union for civilian workers of the country's Ministry of Defence, has flagged several concerns regarding the drafting of the 8th Pay Commission's ToR, a framework that defines the scope of a pay commission and specifies the areas in which the panel must offer recommendations.

What all did AIDEF's letter say?

In a letter to Finance Minister Nirmala Sitharaman, the union alleged that 69 lakh central government pensioners and family pensioners have been excluded from the scope of the 8th Pay Commission.

“It is most unfortunate that 69 lakh central government pensioners and family pensioners who have given their sweat and blood to the country for more than three decades while in service are kept out of the purview of 8th CPC,” the employees' union wrote in the letter.

The union also added that the revision of pension is the pensioners' right and they cannot be discriminated against.“Majority of them are in the fag end of their life and outright ignoring them is totally unjustified,” the letter read.

What does the official ToR say?

The official notification does not specifically mention the exclusion of pensioners. It talks about a review of emoluments, including pay, allowances, and other facilities/benefits for the following categories of employees.

- Central Government employees: industrial and non-industrial.

- Personnel belonging to the All India Services.

- Personnel belonging to the Defence Forces.

- Personnel of the Union Territories.

- Officers and employees of the Indian Audit and Accounts Department.

- Members of the regulatory bodies (excluding the RBI) set up under the Acts of Parliament.

- Officers and employees of the Supreme Court.

- Officers and employees of the High Courts whose expenditure is borne by the Union Territories.

- Judicial officers of the subordinate courts in the Union Territories.

ToR mandates 8th CPC to review the following:

- Death-cum-Retirement Gratuity of employees borne on the National Pension System (including Unified Pension Scheme) and make recommendations thereon.

- Death-cum-Retirement Gratuity and pensions of employees not borne on the National Pension System (including Unified Pension Scheme) and make recommendations thereon keeping in view "the unfunded cost of non-contributory pension schemes".

The 8th Pay Commission is expected to submit its recommendations within 18 months.

7th and 8th Pay Commission ToRs compared

The union stated that the ToR of the 8th Pay Commission, regarding the revision of employees' emoluments, are“totally different” from those of the previous 7th Central Pay Commission.

“2.5. To work out an emolument structure conducive to attracting talent to Government service, promoting efficiency, accountability and responsibility in the work culture,” read the ToR of the 8th CPC on emoluments.

Whereas, the ToR of the 7th CPC stated,“To work out the framework for an emoluments structure linked with the need to attract the most suitable talent to Government service, promote efficiency, accountability and responsibility in the work culture, and foster excellence in the public governance system to respond to the complex challenges of modern administration and the rapid political, social, economic and technological changes with due regard to expectations of stakeholders, and to recommend appropriate training and capacity building through a competency based framework.”

The AIDEF also informed the finance minister that the 7th Pay Commission was asked to examine pension structures and revision norms for employees who had retired before the implementation of its recommendations. Since such a clause is missing on the 8th Pay Commission's ToR, the body urged the government to amend the framework.

It also asked the government to consider issues such as restoring commuted pensions after 11 years and introducing 5% hike every five years after retirement, as they have been pending for a long time. These recommendations were made earlier by a Parliamentary Standing Committee.

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