The consultation process for the 8th Central Pay Commission has formally begun, with employee representatives submitting a detailed set of proposals seeking significant changes to salaries, pensions, and allowances. Among the key demands is a minimum basic pay of INR 69,000 and an increase in annual salary increments to 6%.

The proposals were submitted by the staff side of the National Council-Joint Consultative Machinery (NC-JCM), a body representing central government employees. The recommendations come ahead of the expected implementation of the new pay structure from January 1, 2026. 8th Pay Commission: When Will Salary Hike Talks Begin and What Should Employees Expect?

8th Pay Commission News: Key Pay and Fitment Proposals

At the core of the memorandum is a proposed fitment factor of 3.83, which is used to revise salaries and pensions. If accepted, this would lead to a substantial increase in take-home pay across levels. The draft also recommends doubling the annual increment rate from the current 3% to 6%, citing the need to better reflect inflation and rising living costs.

Changes to Pay Structure

The proposal includes simplifying the existing pay matrix by merging 18 levels into seven broader pay bands. This restructuring is aimed at reducing stagnation and ensuring smoother career progression.

Under the suggested model, entry-level salaries could rise from INR 18,000 to INR 69,000, while mid-level and senior positions would also see proportionate increases based on the same fitment formula. 8th Pay Commission Meeting in Delhi, Maharashtra: Full Schedule, Key Dates and What It Means For Employees.

Allowances and HRA Revision

A major focus of the recommendations is the revision of House Rent Allowance (HRA). The proposed structure suggests:

  • 40% of basic pay for X category cities

  • 35% for Y category cities

  • 30% for Z category cities

The memorandum also calls for linking HRA to Dearness Allowance (DA) so that it adjusts automatically with inflation, along with periodic revision of city classifications.

Pension and Social Security Demands

The draft includes significant pension-related proposals, such as restoring the Old Pension Scheme for employees who joined after January 1, 2004. It also suggests fixing pensions at 67% of the last drawn pay and family pensions at 50%.

Additional recommendations include enhanced insurance coverage, higher compensation for employees who die during service, and expanded leave benefits, including longer maternity and paternity leave.

Consultation Process Underway

The 8th Pay Commission, notified by the Centre in January 2025, is chaired by former Supreme Court judge Ranjana Prakash Desai. The panel is reviewing inputs from stakeholders as part of its consultation phase.

Employees and organisations can submit their suggestions through the official portal and request meetings with the commission. The deadline for submissions and appointment requests is April 20, 2026.

The submitted proposals are recommendations and will be reviewed by the commission before finalising its report. The government will take the final decision on implementation. If approved, the changes could lead to a significant revision in pay and benefits for central government employees, marking one of the most substantial updates in recent years.

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(The above story first appeared on LatestLY on Apr 15, 2026 12:58 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).