Concerned Department: Ministry of Finance (Pay Commission)
Sanjeev Goyal
PRSEC/E/2025/0044512
Sub: 8th Pay Commission – thoughts of a citizen.
Historically, Pay Commissions were convened every five years. This interval was later extended to ten years and following the current 1o year cycle, the 8th Pay Commission is due effective from January 1, 2026. However, despite passage of 10 years, a prevailing sentiment suggests that government employees receive handsome compensation. This, coupled with a stable (mostly tension free) work environment, for may posts, often results in salaries exceeding those offered by the private sector for comparable qualifications and experience.
Therefore, the 8th Pay Commission may also consider revising the formula/periodicity for future commissions.
Furthermore, a significant disparity exists regarding benefits extended to contractual & project staff viz-a-viz regular staff. While regular government employees receive comprehensive benefits, inter alia, NPS contribution (14% against mandated 10% for private sector), LTC, unlimited medical coverage, gratuity, telephone/newspaper reimbursement, TA, school fee, honorarium and leave encashment whereas contractual staff are excluded even from basic social security measure i.e. membership to Provident Fund/NPS.
This creates an inequitable situation where one group enjoys full benefits, and another receives none. It is important that mandatory enrolment in EPFO/NPS be extended to all contractual and project employees. Denying these individuals basic social welfare provisions is unjust, particularly considering the government's efforts to cover maximum population under this coverage including extending social security to gig workers and labourers.
The current policy, where regular government employees earning substantial salaries contribute to PF/NPS, while this is totally denied to other contractual/project employees, exacerbates social inequalities. This discrepancy may requires immediate resolution.
Other detailed observations regarding gaps, deficiencies and anomalies within the current framework are provided with suggestions in Annexure-A for the Pay Commission's consideration. The items, which pay commission may consider DOPT to handle in a better way, may please be transferred to them appropriately.
For consideration please.