Pay, performance, prudence: 8th Pay Commission must heed ground realities

As the government sets the wheels in motion for the constitution of the Eighth Central Pay Commission (CPC), the challenge of reconciling employee welfare with fiscal sustainability will be at the forefront. The commission’s recommendations will affect nearly 4.5 million central-government employees and 6.8 million pensioners, including those of the defence personnel. Beyond just the salary arithmetic, it must realistically reflect India’s evolving economic landscape, shifting demographics, and the government’s fiscal capacity.

 

One of the prominent demands from staff representatives, as reported by this newspaper recently, is to increase the “standard consumption norm” from 3 to 3.6 units — a