8th Pay Commission Latest News: Employees Demand INR 69,000 Minimum Pay and 3.83 Fitment Factor
The 8th Pay Commission met employee representatives on April 28. Key demands include raising minimum pay from INR 18,000 to INR 69,000, using a 3.83 fitment factor, and scrapping the NPS in favor of the Old Pension Scheme. Proposals also include 6 per cent annual increments and doubling leave encashment to 600 days.
The 8th Central Pay Commission (CPC) has formally commenced its consultation process with a high-stakes meeting where employee representatives presented an ambitious charter of demands. Led by Shiv Gopal Mishra, Secretary of the National Council (Staff Side) of the Joint Consultative Machinery (NC-JCM), the standing committee met with the Commission on April 28 to propose a major overhaul of the current salary and pension structures. The outcome of these discussions will directly impact approximately 45 lakh central government employees and nearly 69 lakh pensioners.
Minimum Pay and Fitment Factor
The cornerstone of the employees' memorandum is a demand for a steep hike in the minimum basic pay. The Staff Side has proposed raising the entry-level salary from the current INR 18,000 to INR 69,000. 8th Pay Commission Update: First Round of Talks Ends in Delhi, Employees Demand Higher Pay and Pension Reforms.
To achieve this, they have suggested a fitment factor of 3.83 times for revising existing salaries and pensions. This calculation is reportedly based on the rising costs of living for a five-member family, factoring in higher nutritional requirements and modern technological expenses.
Career Progression and Increments
To address long-standing issues of career stagnation, the representatives have sought significant changes to the annual increment and promotion policies:
- Annual Increment: A proposal to double the current rate from 3 to 6 per cent of the basic pay.
- Promotion Guarantee: A demand for at least five promotions within a 30-year career.
- Assured Progression: Enhanced benefits under the Modified Assured Career Progression (MACP) scheme, including two additional increments upon promotion.
Pensions and the NPS Conflict
A major point of contention remains the retirement framework. The Staff Side has called for the complete withdrawal of the National Pension System (NPS) and the scrapping of the recently introduced Unified Pension Scheme (UPS). The memorandum demands a return to the Old Pension Scheme (OPS) - a non-contributory, defined-benefit system. Representatives argued that the classification of pensions as "unfunded" is inaccurate, as employees previously surrendered contributory provident fund benefits in exchange for a guaranteed pension.
Allowances and Leave Benefits
The charter also includes a request to triple all existing allowances, with a specific focus on House Rent Allowance (HRA), Children Education Allowance (CEA), and Risk Allowance. Key proposals include:
- Linking all allowances directly with the Dearness Allowance (DA).
- Increasing leave encashment limits to 600 days.
- Introducing new leave categories, including menstrual leave and parent care leave.
- Restoring interest-free advances for festivals and vehicle purchases. 8th Pay Commission: Submission Deadline Now May 31, Major Reforms Proposed.
Next Steps and Deadline Extension
Following the presentation, the Commission, chaired by Justice Ranjana Prakash Desai, assured the delegation that all demands would be examined thoroughly. In a significant update for those who have yet to submit their views, the 8th CPC has extended the deadline for submission of memorandums to May 31. The Commission has also indicated plans to visit field units, including remote railway and defense locations, to better understand working conditions before finalising its recommendations.
(The above story first appeared on LatestLY on May 02, 2026 11:32 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).
