The 8th Pay Commission has created a stir among government employees and pensioners. Ever since the government issued the Terms of Reference (ToR), employee organizations have become active with their demands. The employees hope that this time their long standing demands will be seriously considered. The most discussed issue in this entire process is a special medical allowance, which has been proposed to be increased several times.
Big proposal to increase medical allowance by 20 times
Employee organizations have demanded that the Fixed Medical Allowance (FMA) be increased from ₹1,000 per month to ₹20,000. This demand is for those employees and pensioners who live in areas where the Central Government Health Scheme (CGHS) is not available. Organizations say ₹1,000 is too little even with today’s inflation, making it difficult for pensioners living in rural or remote areas to afford medical treatment.
Emphasis on fitment factor and annual increment
The employee unions are not only pushing for medical facilities but also for a new formula to increase the salary. The old demand for fitment factor of 3.25 has been reiterated. Apart from this, it has been proposed to increase the annual salary increment from 3% to 7%. Postal unions suggest it should be at least 5%, as a 3% raise after a long career is not enough to make ends meet.
Basic salary of employees may increase by 66%
One main demand is related to the family unit, which is proposed to be increased from 3 to 5 members. This means that dependent parents should also be considered part of the family. Unions claim that if the government accepts this, it will have a major impact on basic salary calculations by up to 66%. This can increase the take-home salary of employees significantly.
Giving cash in lieu of leave and retirement benefits is being considered.
The employees have demanded that LTC should be given in cash so that the employees can spend it as per their convenience. It has also been proposed to increase the leave encashment limit from 300 days to 400 days. Efforts are also being made to improve pensions and other retirement benefits to make old age more secure.
Demand for Old Pension Scheme (OPS) is gaining momentum
The pension issue has once again become heated. In the meeting of the drafting committee, the demand for complete restoration of the Old Pension Scheme (OPS) was strongly raised. The unions are clearly saying that new schemes like NPS and UPS should be abolished and the old pension scheme should be implemented. Although no specific indication has been received from the government yet, the employee organizations are adamant on their demand.
Pay commission work fast, may get good news soon
8th Pay Commission has opened its office in Chandralok Building on Janpath in Delhi. Former Supreme Court judge Justice Ranjana Prakash Desai is its chairperson. The opening of the office shows the increasing pace of the commission’s work. It will be known in the coming months to what extent the government agrees to the demands of the employees. If proposals like increasing medical allowance and salary are accepted, then about 10 million employees and pensioners will get major relief.