Answering the 18 questions of 8th CPC
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Answer 1: The guiding Philosophy of the CPC should be equity, transparency and fairness. Government Employees are the backbone of the Public Service delivery. The objective should be to provide a level of Financial Comfort to employees and their families commensurate with the needs and requirement of modern life. When the Pay and the Welfare of the employees are prioritized, the entire Nation benefits through better governance, motivated service and social stability. Employees should not be seen as a burden, but as partners in Nation Building and to achieve “People first, Nation always”. Pay hikes of the employees are not mere expenses for the Government, but investment in human capital which drive consumption, savings and economic growth.
India today is the 4th Largest Economy and the world’s fastest growing economy and sufficient resources are available for our developmental and strategical needs. India is projected to become the World’s 3RD Largest Economy by 2027 with GDP expected to surpass US $ 5 Trillion. The fiscal deficit remains contained at around 4.3% of GDP. Revenue collections have more than doubled since 2016, Therefore, we urge upon the CPC to ensure that any recommendations should not result in eroding of the real income of employees.
Answer 2: Comparison between Government and Private Sector compensation is difficult and not viable as the objectives of the two services are inherently different. Public service is not to earn profit whereas the Private sector aim is to maximize profit. The CCS Conduct Rules prohibits the Government Employees from various activities including to work after the office hours in any Industry / Office. Moreover, Central Government Employees are primarily engaged in Public Service delivery, Policy Implementation and Regulatory Functions, apart from the role of Industrial Employees of Railways and Defence who are involved in Production and Operational Activities which involves lot of risk and hazard. Their roles demand broader Administrative competence, policy understanding, coordinated planning and execution. The nature of their responsibilities is often more compacts and nationally significant which cannot be compared with others. The 8th CPC may also take a note that in certain PSU’s like Coal India, ONGC etc., employees are getting much higher Pay Structures and other benefits when compared to Central Government Employees. Therefore, considering the sovereign responsibilities, Nationwide accountability, transferable service conditions, Conduct Rules etc. the Central Government employees deserve much superior Pay Scales and Allowances. Government should ensure decent work environment in the Country.
Answer 3: CPC should not adopt sector specific benchmarking of Central Government functions with Private sector. The duties, Accountability and service conditions of Central Government employees are fundamentally distinct. Central Government Employees function under strict constitutional, Administrative and Financial Rules. All their functions and decisions are subject to Audit, Parliamentary Scrutiny, Vigilance Oversight, RTI Provisions apart from Conduct Rules. PSU’s and Private Sector operates within different performance metrics, commercial objectives including earning profit. In contrast Central Government Employees implement National Policies, Manage Public Funds and ensure governance across the Country. Large section of the Central Government Employees as already mentioned are Industrial Workers who are involved in the Operation of Railways, and in the Production of Locomotive engines, wagons, high Speed Coaches etc. in Defence Arms, Ammunition, Weapon etc., Therefore, pay determination should not be linked to sector specific benchmarking, instead uniform horizontal relativity across all Government Departments must be preserved. The principle for horizontal and vertical relativity should be that common and similarly placed categories of posts must have same pay and maintenance of vertical relativity. Compensation for Central Government Employees should be accordingly fixed. The CPC should ensure fair and equitable Pay and Allowances consistent with the above principles.
Answer 4: Government perks are not mere add – ons. They are the pillars of employee’s security and dignity. Security of Tenure, Medical Coverage, Housing and Predictable Increments are what make Government Service attractive, especially for those who dedicate to Public Service. These perks compensate for the lack of rapid promotions, periodical cadre restructuring for ensured promotions etc., and for the flexibility found in the Private sector. Therefore, these facilities should not be used for cross sector comparisons. As a model employer, the Government must ensure that its employees and pensioners receive facilities and benefits that reflect the dignity, stability and public accountability associated with Government service. What is observed today is that the present allowance structure has resulted in inverted equity. Employees in lower pay scales, who often incur proportionately higher commuting costs and pay a large share of their income towards House Rent, thus receiving the lowest quantum of allowances. This imbalance weakens the principles of fairness and equity in public compensation. Therefore, the annual increments, job security, medical care and retirement benefits must remain strong by linking all the allowances index to the cost of living and consumer price index.
Answer 5: Generally, Government entry level pay sets a modal benchmark for the Country. While it may not directly impact the informal or gig sector, it signals what society considers a fair and living wage for honest work. When the pay of Government employees rises, it encourages the other sectors to improve their standards even if in a phased manner. Government as a model and ideal employer must offer a respectable and competitive pay structure to attract and retain talent recruited through rigorous, merit-based processes. Any direct comparison with private sector salaries will be misleading as the compensation of Private sectors varies widely across industries and is linked to their commercial profitability. Government pay is based on principles of public accountability, uniformity, equity and fiscal responsibility. Therefore, the 8th CPC should determine the wage hike and other compensation which reflects the sovereign responsibilities and the unique nature of public service. We believe that the pay of Government employees should be high enough to ensure dignity for all the employees, with employees serving until retirement. We support reasonable increases tied to skill development, productivity and of course the decent and dignified living of the employees so that Government remains a role model.
Answer 6: Various allowances are paid to Government employees and Dearness relief to pensioners to offset the impact of inflation and rising living costs. These elements are not privileges, but compensatory in nature intended to preserve real income and ensure financial stability in changing economic conditions. It is to be mentioned here that in many Government department regular promotions for Group C and B employees are delayed or not granted in a timely manner. This deprives employees of legitimate career progression and proper wage revision despite their having acquired the required skills, experiences and after completion of prescribed residency period. To ensure this the is demanding assured 5 minimum guaranteed Promotion in a service span of 30 years in the Promotional Hierarchy in a time bound manner. We support a Fitment factor that delivers a meaningful improvement in take home pay especially for lower and middle ranks by keeping family units as 5 instead of 3. All the allowances should be linked to the Consumer Price Index. Employees expect to see their hard work reflects in their pay not just in Annual Increments. The Fitment factor will be given in detail in our memorandum.
Answer 7: The incumbent of the Apex Level post discharges function of immense responsibilities, involving inputs for the evaluation and enunciation of National Policies and its successful execution. The incumbent is subject to a high degree of accountability while exercising fiduciary responsibility and maintaining political neutrality. Government service is well-structured, with duties codified and monitored through audits, vigilance, and parliamentary oversight. Unlike commercial organizations, there is no objective or uniform criterion to measure individual or group performance. Therefore, we propose that the salary of a secretary should not be more than 10 times of the Entry pay / Minimum pay.
Answer 8: Considering the facts that today’s young professionals compare Government Jobs with lucrative private offers, and if Entry pay is too low, the Government loses out on talent. We strongly support front-loading pay – making entry salaries attractive so that bright graduates and professionals feel valued and motivated from day one. At the same time there must be clear, fair progression for those who stayed and perform in the Government. Mid-career and senior pay should reward loyalty, experience and merit but not at the cost of neglecting new entrants. There should be a balanced approach by the 8th CPC, by recommending high entry pay, regular increments and time scale promotions. This ensures both attraction and retention while maintaining fiscal prudence. Group A Service officers continue to attract talent due to the authority, privileges, and unparalleled job security associated with these posts. However, the widening gap between Government pay and private sector compensation must be recognized as a factor that undermines recruitment and retention. While parity with private sector pay is neither feasible nor desirable, the Commission must ensure that this disparity is addressed to maintain the attractiveness of Government service.
Answer 9: The frequency of increments should be Annual. The present Annual Increment rate of 3% requires revision to 6% considering the fact that today the Government employees are required to continuously upgrade their skills adopt latest technology and best practices Benchmark gain experience and enhance their efficiency over a period. A higher increment rate would better reflect improved competence, productivity and contribution to public Administration. We propose for 6% Annual Increment since a system where increments are higher at entry and junior levels, helping young employees build their life and families. Promotional pathways must be protected and strengthened to maintain morale and efficiency. A fair increment system, clear promotions, and continuous professional development will significantly enhance motivation, efficiency, and governance outcomes.
ALLOWANCES
Answer 10: Cafeteria approach is followed in Central Public Sector Enterprises. The same is not a viable option for Central Government service since traditional allowances ensure equity and protect employees posted in Risk and Hazardous nature of job, hard stations, High altitudes or facing unique hardships. In the present system all allowances like Housing, Travelling, Risk and Hardship allowances, Night Duty Allowance, Nursing Allowance, Patient Care Allowance, Leave Travelling and Medical Facilities are guaranteed and that should continue.
It is submitted that the existing allowances must be retained and improved. These allowances are specific in nature, vary over time, and should remain distinct from the basic salary structure. Their rates should be increased threefold and paid net of taxes to preserve their identity and purpose.
PENSIONS
Answer 11: Pensions are lifeline for retired employees and their families. The Hon’ble Supreme Court has consistently held that “Pension is not a bounty payable at the whim’s of the employer, but a deferred portion of compensation for long and devoted service”. It has further emphasized that retiral benefits form part of the right to livelihood under Article 21 of the constitution of India. Nonpayment or inadequate protection of pensionary benefits therefore raises serious constitutional concerns. Pension is a social welfare measure intended to ensure dignity and financial security in old age. Pensioners after decades of Public service must be able to lead a decent, and secured life post-retirement. The defined pension under CCS Pension Rules 1972 was discontinued for Civilian Employees since 01.01.2004. Employees recruited on or after 01.01.2004, have started retiring with a very nominal pension which nowhere meets the cost of living. Social structure, the senior citizens are forced to stay away sometimes from their children forces them to meet their needs at their own. Expenditure on pension is estimated at the around 4% of total revenue expenditure and hence pension liabilities will remain manageable. Restoration of the Old Pension Scheme to be considered by the CPC.
DEARNESS ALLOWANCE
Answer 12: Dearness Allowance is a life line for employees, protecting their real income to some extent from inflation. The AICPI (Industrial Workers) currently used for DA Calculation does not accurately reflect the real inflation faced by Central Government Employees and Pensioners. Many items in the CPI basket are valued at subsidized or ration (Public Distribution System) rates, whereas employees and pensioners purchase goods in the open retail market at significantly higher prices. Therefore, a more realistic index should be based on prevailing retail market prices or rates in Government Cooperative Consumer Stores. After Covid-19 pandemic inflation has risen sharply particularly in housing, transportation and medical expenses. The fourth and sixth Central Pay Commission had recommended for creating a separate consumer price index reflecting the consumption pattern of Government employees. We oppose any hybrid indexation approach since the same may dilute inflation protection. We propose that the 8th CPC should recommend for a distinct Consumer Price Index for Central Government Employees and Pensioner for protection of real wages and prevent income erosion.
RAILWAYS, CAPF & DEFENCE
Answer 13: The Uniformed Personnel and Civilian Employees of Defence, the Railway employees and the Central Armed Police Forces face unique risks, hardships and responsibilities. Their Pay and Allowances should reflect these realities. The Indian Armed Forces (Army, Navy & Airforce) and also the CAPF play a very important role in the Security of our Country. The Civilian Employees in Defence work side by side with the Soldiers for the defence of our Country. Railway employees are working 24 / 7, to maintain uninterrupted supply chain of the essential commodities throughout the Country, beside transporting 20 million passengers per day. Railways in particular and the Central Government Employees in general played a very crucial role during the Covid-19 pandemic when the entire nation was on lockdown for running the Government Machinery without any standstill. That apart from this around 400 to 500 Railway employees sacrifice their life every year while performing their duty in keeping the Indian Railways Operational uninterrupted. Similarly, in Defence also every year especially in the Ordnance Factories etc. Defence Civilian employees are sacrificing their life while performing their duty due to explosion etc. Therefore, they deserve better treatment in Pay and Allowances and Pension from the 8th CPC.
SCIENTISTS
Answer 14: Scientists are the Nations innovators. Their pay must match in commensurate with their unique contributions to the Country. They are required to conduct research and also to develop technologies that have application in Industry and the economy at large for overall developments of the country to complete with the developed nations across the globe. They are required to keep themselves updated for which they receive an allowance. We insist that the Scientist pay should be competitive, transparent and supportive of lifelong learning. This ensures India retains and attracts world class talent for its Space, Atomic, and Defence R&D, Water Resources , Meteorology , Geological , Agricultural mission etc. Given the importance of their work, their pay package must be sufficiently attractive and globally competitive to draw the best scientific talent in the country, including Non-Resident Indian (NRI) professionals and researchers working abroad. Competitive compensation is essential not only to attract high-calibre individuals but also to retain experienced scientists within the public research ecosystem.
ARMED FORCES
Answer 15: Armed Forces Personnel deserve pay that reflects their risk, readiness, alertness and sacrifices, we support replacing the static Military service pay with a dynamic Risk and Readiness premium which should be at least 25% above CAPF / Police and Civilian Entry Levels. The Fixed Term Employment in the Armed Forces in the name of Agniveer should be dispensed with and all those who are selected and appointed as Agniveer should all be regularized. Their entry pay must be attractive with clear progression and strong non- monetary benefits such as Housing, Rations etc., The CONFEDERATION urges the Government to ensure that Soldiers, Sailors and Airforce personnel are never left behind and their compensation should always honour their service. The CRPF Personnel’s do need to get proper benefits as of military personnel on border duties and they also deserve better wages / Allowances being responsible for internal and external security and law and order in the country
Answer 16: Defence Personnel have given their youth and health for the Nation. Any reform should be to honour their sacrifice and ensure their post-retirement dignity. The CONFEDERATION support gradual humane changes such as phased increase in retirement age, voluntarily retirement with fair compensation and improved reemployment opportunities for the veterans. The defined Non-Contributory Old Pension Scheme should continue for the Armed forces. The Nation’s Security depends on motivated, respected personnel. Cost savings should never undermine this trust.
For the Financial Year 2025–26, Defence Pension has been allocated ₹1,60,795 crore, constituting approximately 23.60% of the total defence budget of ₹6,81,210.27 crore. This allocation reflects the nation’s commitment to those who have served in safeguarding its sovereignty and territorial integrity.
Defence personnel make extraordinary sacrifices, often risking and, in many cases, laying down their lives in the line of duty to protect the nation’s borders. Financial constraints or perceived paucity of funds should never undermine the country’s obligation toward its armed forces personnel and veterans. Pension is not merely an expenditure; it is a solemn commitment in recognition of their service and sacrifice.
BONUS
Answer 17: In Government Machinery any concept of Bonus on Individual performance is not possible. It is a collective work of all the employees whether it is Industrial Establishments like Railways or Defence Production and other Units. Employees Bonus are additional Payments beyond the regular salary intended to reward performance, enhance morale and improve productivity. Even though the Payment of Bonus Act 1965 is not applicable to the Central Government Employees, the Bonus for Central Government Employees was derived from the principles laid down in the Bonus Act. At present Productivity Linked Bonus is granted to Railways Employees, Postal Employees and Defence Civilian Employees in Ordnance Factories, Navy, Airforce, Army and DGQA & DGAQA. Others are governed under the Adhoc Bonus Scheme. The Bonus is calculated on Monthly emoluments capped at Rs.7,000/- for 30 Days. Moreover, in the PLB Schemes of Defence there is no provision of minimum 30 days Bonus if the Productivity index falls below certain level. This is not due to employees mistakes but due to lack of Workload. Therefore, in PLB Scheme there should be a minimum Guaranteed Bonus of 30 days wages. Bonus should be paid on the actual Basic Pay + DA of the employees.
REFORMS IN STAFFING
Answer 18: We are is of the firm view that work of a permanent, perennial and core nature in Government Departments should not be outsourced, contractorised etc., Fixed Term Employment also is not good in Government Departments, since all these mode of appointments are exploitative in nature. Functions that are continuous, sovereign, which requires skill and experience etc., must remain within the direct Administrative control of the Government to ensure accountability, transparency, and institutional continuity. Contractual and Fixed Term Employment etc., adversely affect employee morale, job security, safety and quality of public service delivery. Governance functions, particularly in essential and regulatory sectors, require trained personnel who are fully accountable under constitutional, administrative and financial rules.
The policy of indiscriminate corporatization and privatization of core service sectors should therefore be revisited. A stable and permanent work force in Government is essential to establish a robust system of governance, maintain public trust and ensure consistent delivery of services in the larger national interest.
Excessive reliance on contractual arrangements often Lateral Entry at any higher-level leads to instability in service delivery, dilution of responsibility, and erosion of public trust. Lateral entry at higher levels restricts career progression for existing staff.
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