Daily News Analysis ‘8th Central Pay Commission (8th CPC) ’ : 13 June

Why in News: 

• Discussions on the proposed 8th Central Pay Commission have revived debates on salary revision, pensions and public-sector compensation reforms.

Key Facts

• Central Pay Commission (CPC) is constituted by the Union Government to review and recommend changes in salary, allowances, pension, and service conditions of Central Government employees and pensioners.
• It is a non-constitutional, non-statutory, ad hoc body constituted periodically (generally every 10 years).
• First CPC was constituted in 1946; the Seventh CPC was constituted in 2014 and its recommendations were implemented from 2016.
• The 8th CPC is expected to review pay structure, fitment factor, allowances, and pension benefits.
• Its recommendations are advisory in nature and not binding on the Government.
• It covers Central Government civilian employees; States may adopt or modify the recommendations separately.
• Major objectives include pay parity, administrative efficiency, employee welfare, and fiscal sustainability.