New Delhi. With the increasing activity of the 8th Pay Commission, an atmosphere of enthusiasm and discussion has been created among the government employees and pensioners. Since the release of the Terms of Reference (ToR), employees’ organizations have been emphasizing on their old and new demands. This time most of the focus is on medical allowance, salary reform and retirement benefits.
The 8th Pay Commission has opened its office in Chandralok Building, Delhi and has increased the pace of work. The commission is being headed by former Supreme Court judge Ranjana Prakash Desai. It will become clear in the coming months to what extent the government agrees to the major demands of the employee organizations.
1. Big offer in medical allowance
Employee organizations have suggested that the Fixed Medical Allowance (FMA) be increased to Rs 20,000 from the current Rs 1,000 per month. It aims to help those employees and pensioners who live in areas where Central Government Health Scheme (CGHS) facilities are not available. This step is considered necessary in view of inflation and increasing cost of treatment.
2. Fitment Factor and Annual Salary Increment
Regarding salary reform, employee organizations have reiterated their old demand of increasing the fitment factor to 3.25. Also, it has been proposed to increase the annual salary increment from the current 3% to 7%. Many organizations including the Postal Department want a minimum increase of 5% so that it has a positive impact on the lifestyle of long serving employees.
3. Big change in basic salary
Employee organizations have proposed expansion of the family unit. If the government approves it, an impact of up to 66% may be seen in the basic salary calculation. This means that employees on whom parents or other family members depend will see a substantial increase in their salaries.
4. Improve vacation and retirement benefits
It is proposed to provide LTC facility as a cash option, so that employees can spend it as per their need. Along with this, a demand has been made to increase the limit of money received in lieu of leave on retirement from 300 days to 400 days. Steps are also likely to be taken to improve pension and other retirement benefits.
5. Demand for Old Pension Scheme (OPS)
Employee organizations are demanding re-implementation of the Old Pension Scheme (OPS). They believe that new schemes, such as NPS and UPS, do not provide adequate protection to employees. Although no clear indication has come from the government on this yet, the organizations are continuously emphasizing on their demands.
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