New Delhi, May 28: The long-anticipated 8th Central Pay Commission may soon move forward, with the government expected to approve its Terms of Reference (ToR), enabling formal negotiations between employee unions and the Centre on vital salary, pension, and allowance reforms. Senior members of the National Council–Joint Consultative Machinery (NC-JCM) confirmed that the ToR clearance is imminent, following months of engagement.

Shiv Gopal Mishra, Secretary (Staff Side), NC-JCM, stated, “We expect the Terms of Reference to get the government’s nod soon. It should be approved at the earliest.” The NC-JCM, a statutory forum comprising staff representatives and government officials, plays a central role in facilitating structured dialogue. 8th Pay Commission Set To Boost Salaries: Here’s What a Higher Fitment Factor Could Mean for Govt Employees.

In January, the government invited inputs on the ToR, to which the NC-JCM responded with a detailed draft. A key demand is the recalculation of minimum wages based on five consumption units—up from three—to include dependent parents, citing evolving family structures and the legal mandate under the Maintenance and Welfare of Parents and Senior Citizens Act, 2022. 8th Pay Commission: Salaries of Over 1 Crore Govt Employees Set for Major Overhaul With Expected Hike of 39.74%; Check Details.

Other major union demands include merging lower pay levels to avoid stagnation, restoring the commuted portion of pensions after 12 years, implementing pension revisions every five years, and merging 50% of Dearness Allowance (DA) with basic pay—reviving a policy last seen under the 5th Pay Commission.

The DA currently stands at 55%, and merging it with basic pay has gained traction amid persistent inflation. Although the Union Cabinet approved the 8th Pay Commission in January 2024, the actual panel has yet to be formed. While implementation is slated for January 1, 2026, further delays in constituting the panel and finalising the ToR could push reforms to 2027.

(The above story first appeared on LatestLY on May 28, 2025 01:53 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).