8th Pay Commission: Govt Employee Unions Seek INR 54,000 Minimum Pay, 7% Annual Increment in Key Draft Meeting
The Staff Side Drafting Committee of the National Council (NC-JCM) has begun a crucial week-long meeting in the capital to finalize a unified charter of demands for the upcoming 8th Central Pay Commission.
New Delhi, February 25: The Staff Side Drafting Committee of the National Council (NC-JCM) has begun a crucial week-long meeting in the capital to finalize a unified charter of demands for the upcoming 8th Central Pay Commission. The panel represents over 1.2 crore central government employees and pensioners and is preparing to submit a consolidated memorandum to the commission chaired by Justice Ranjana Prakash Desai.
The development follows the operational launch of the 8th Pay Commission office at Janpath, marking the formal start of consultations on the next decade’s salary and pension structure. 8th Pay Commission: Rising DA Signals Strong Fitment Factor Boost for Central Govt Employees.
INR 54,000 Minimum Pay, Multi-Level Fitment Factor Proposed
A major demand is the revision of the minimum basic pay from INR 18,000 under the 7th Pay Commission to INR 54,000. Employee unions, including the Federation of National Postal Organisations, have proposed a multi-level fitment factor ranging between 3.00 and 3.25.
Unlike the previous uniform multiplier, this structure aims to provide greater benefit to lower-level employees in Levels 1 to 5 while avoiding pay compression at senior levels. If approved, the maximum basic pay of a Cabinet Secretary could reportedly rise to around INR 8.12 lakh. 8th Pay Commission Salary Hike: Could Minimum Basic Pay Rise to INR 58,500? Latest Details Here.
7% Annual Increment, Family Unit Expansion
Unions are also pushing for an increase in annual increments from the current 3 percent to 7 percent, citing inflation and long-term financial security concerns.
Another key proposal is redefining the standard family unit in wage calculations from three to five members, factoring in dependent parents. This revision could significantly impact cost-of-living formulas and raise base salaries across pay bands.
OPS Restoration, Higher Medical and Retirement Benefits
The restoration of the Old Pension Scheme remains a contentious demand. While the Centre has introduced the Unified Pension Scheme, several federations continue to oppose the National Pension System, arguing that a defined benefit pension model ensures stronger social security.
Additional proposals include raising the Fixed Medical Allowance from INR 1,000 to INR 20,000 per month for pensioners outside CGHS coverage, increasing leave encashment limits from 300 to 400 days, and allowing cash encashment of Leave Travel Concession.
The final recommendations of the 8th Pay Commission are expected to come into effect from January 1, 2026, subject to approval by the Union government.
(The above story first appeared on LatestLY on Feb 25, 2026 03:10 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).