INDIA

8th Pay Commission Latest News: Maharashtra Pension Body Demands INR 65,000 Minimum Pay and 3.8 Fitment Factor

The Maharashtra pension body has proposed significant 8th Pay Commission reforms, including raising the minimum pay to INR 65,000 and the fitment factor to 3.8. Key demands also feature a 5 per cent annual increment, revised HRA rates and a 2.5x hike in travel allowances to better align with current inflation and living costs.

8th Pay Commission Latest News: Maharashtra Pension Body Demands INR 65,000 Minimum Pay and 3.8 Fitment Factor
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As the 8th Pay Commission (8th Pay) moves into its active phase of consultations, the Maharashtra Old Pension Organisation has presented a comprehensive list of demands aimed at significantly increasing the financial security of central government employees and pensioners. Representing a broad section of the workforce, the organisation is advocating for structural revisions to combat rising living costs and inflation.

Key Salary and Fitment Proposals

At the forefront of the body's proposal is a substantial hike in the minimum entry-level basic pay, requesting an increase from the current INR 18,000 to INR 65,000. This recommendation is based on the Aykroyd formula, which calculates wages according to realistic family consumption needs.┬а8th Pay Commission: NCJCM, AIDEF and Maharashtra Old Pension Body Push for 3.83 Fitment Factor.

Additionally, the organization has called for a fitment factor of 3.8, a marked increase from the 2.57 factor applied under the 7th Pay Commission. Advocates argue that this adjustment is necessary to ensure a meaningful wage revision while maintaining long-term fiscal balance.

Demands for Inflation Protection

The proposal also addresses the current volatility of allowances, particularly regarding Dearness Allowance (DA) and Housing Rent Allowance (HRA):

  • DA Reform: The body has requested a guaranteed minimum 4 per cent increase for every DA revision and an automatic merger of DA with basic pay once it reaches the 50 per cent threshold.
  • HRA Restructuring: Proposing to decouple HRA from DA, the organization recommends increasing rates to 12 per cent, 24 per cent, and 36 per cent for X, Y, and Z category cities, respectively.
  • Travel and Annual Increments: The body has proposed increasing the annual employee increment from 3 to 5 per cent and seeking a 2.5-fold hike in Travel Allowance (TA) to reflect current transportation costs.

Broadening the Scope of Support

Beyond immediate salary hikes, the organisation has emphasised the need for a more realistic assessment of what constitutes a "family unit". By including parents in the count, the group aims to update the family unit to five consumption units, ensuring that pension and salary structures better reflect the social reality of employees. Other recommendations include the implementation of a 10-20-30 career progression scheme for teachers - replacing the current 12-24-26 model - and an increase in special incentives for personnel working in tribal, PESA, and Naxal-affected regions, where infrastructure and security challenges remain acute.┬а8th Pay Commission Latest News: AIDEF Submits Memorandum Seeking INR 69,000 Minimum Pay and 3.83 Fitment Factor.

Context of the Consultation

These demands are part of a wider wave of proposals submitted by various stakeholders, including the National Council Joint Consultative Machinery (NCJCM) and the All India Defence Employees Federation (AIDEF). While individual unions may differ on specific percentages, the consensus across these bodies is a demand for a robust overhaul of the existing pay matrix. The 8th Pay Commission is expected to consider these submissions as it drafts its final recommendations, which are anticipated by mid-2027.

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(The above story first appeared on LatestLY on May 13, 2026 04:25 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).