Central Government Employees Urge Prime Minister for Immediate Constitution of 8th Pay Commission
On December 11, 2024, the Confederation of Central Government Employees and Workers, which represents over 7 lakh employees across various departments, submitted a formal request to the Prime Minister, urging the immediate formation of the 8th Central Pay Commission (CPC). The Confederation emphasized the urgent need for a wage revision to address the growing financial strain on employees due to rising inflation, post-pandemic economic challenges, and the increasing cost of living.
Key Points from the Confederation’s Request
Long Gap Since the Last Revision: The Confederation highlighted that the last wage revision, based on the 7th Central Pay Commission, was implemented in January 2016. Since then, the Dearness Allowance (DA) has crossed 53% as of July 2024, reflecting the steep rise in inflation over the past nine years. Despite these challenges, employees have had to wait for a decade for a wage revision, which the Confederation argues is unsustainable.
Erosion of Real Wages: The Confederation pointed out that the COVID-19 pandemic further worsened the economic situation, causing the prices of essential and non-essential goods to soar. With inflation averaging 5.5%, employees are struggling to maintain their purchasing power, making it difficult to sustain a decent standard of living.
Comparisons with Other Sectors: While public sector units (PSUs) and bank employees receive wage revisions every five years, Central Government employees face a 10-year cycle. The Confederation argued that this longer cycle is increasingly inadequate in the face of rising inflation and living costs.
Rising Household Expenditure: According to data from the National Sample Survey Office (NSSO), per capita monthly household consumption expenditure has more than doubled from 2011-12 to 2022-23. However, wages have not kept pace with this increase, putting financial pressure on employees and pensioners alike.
India’s Economic Strength: The Confederation noted that India is expected to become the third-largest economy in the world by 2027, surpassing Japan and Germany, with a projected GDP of over $5 trillion. Given this strong economic outlook, the Confederation believes the government has the financial capacity to implement timely wage revisions for its employees.
The Confederation’s Call for Action
The Confederation emphasized the government’s social responsibility to ensure a comfortable living standard for its employees. As a model employer, the government must offer competitive pay to attract and retain talented individuals who are essential for effective governance.
In its letter, the Confederation called for the immediate formation of the 8th Central Pay Commission to address the wage erosion caused by inflation and the rising cost of living. It urged the government to act swiftly to ensure that Central Government employees and pensioners receive fair compensation, which would also help improve their morale and productivity.
Conclusion
The Confederation’s request highlights the growing financial strain faced by Central Government employees and the need for a timely wage revision. With India’s economy on a strong growth trajectory, the Confederation believes the government is in a position to meet the expectations of its workforce, ensuring fair compensation and continued effective governance.
