8th Pay Commission: NC-JCM’s Full List of Demands on Pension, Leave, Increment, Allowances and HRA

The National Council - Joint Consultative Machinery (NC-JCM), the apex body representing central government employees and pensioners, has submitted a detailed memorandum to the 8th Central Pay Commission, seeking sweeping changes to pay, pension, leave rules and allowances. The 51-page document proposes raising the minimum basic pay to Rs 69,000 using a fitment factor of 3.833, along with a series of demands covering everything from house rent allowance to child care leave. The recommendations, if accepted, would affect around 50 lakh central government employees and 69 lakh pensioners.

Minimum Pay and Fitment Factor

At the centre of the NC-JCM's memorandum is a demand to raise the minimum basic pay for central government employees from the current Rs 18,000 to Rs 69,000, based on a fitment factor of 3.833. The Staff Side has also proposed merging multiple pay scales to reduce disparities and simplify the existing pay matrix, extending it up to Level 13. 8th Pay Commission Latest News: NC-JCM Demands INR 69,000 Minimum Pay and 6% Annual Increment.

The memorandum further seeks an increase in the annual increment rate, from the current 3 percent to 6 percent, arguing that this would help employees' incomes keep pace with inflation. It also calls for a guarantee of at least five financial upgradations over a 30-year career, at the 6, 12, 18, 24 and 30-year marks, with each upgradation carrying two additional increments and a minimum benefit of Rs 10,000. 8th Pay Commission: Level 15-18 Employees May Get Monthly HRA up to INR 1.93 Lakh Under 2.57 Fitment Factor.

Pension Reform and Restoration of OPS

A major highlight of the memorandum is the demand to scrap both the National Pension System (NPS) and the Unified Pension Scheme (UPS), and restore the Old Pension Scheme (OPS) under the CCS (Pension) Rules. The Staff Side has cited data showing that only 4.5 percent of NPS employees opted to migrate to UPS, describing this as a clear rejection of the newer scheme.

The memorandum also proposes an age-based pension structure, along with reforms aligning pension calculations with the revised pay structure. It further urges that existing pensioners not be excluded from the benefits of the 8th Pay Commission, stating that those who have devoted years to public service should not face discrimination in the new pay structure.

HRA and Other Allowances

On house rent allowance, the NC-JCM has proposed revised rates of 40 percent of basic pay for Class X cities with a population above 50 lakh, 35 percent for Class Y cities with a population between 5 and 50 lakh, and 30 percent for Class Z cities. The memorandum recommends that HRA be indexed to Dearness Allowance (DA) so that it adjusts automatically with inflation, a demand that has been raised since the 6th Pay Commission but has not yet been accepted.

The Staff Side has also sought a threefold increase in all allowances, along with a separate Risk and Hardship Allowance of Rs 10,000 per month. Other proposals include flight entitlement for all employees, Parents Care Leave, and an expansion of Children Education Allowance up to the postgraduate level. The memorandum additionally calls for a special allowance to cover technological expenses and Rs 2 crore in ex-gratia compensation in the event of death during official duty.

Leave and Family-Related Benefits

On leave policy, the memorandum proposes removing the existing limit on the accumulation of earned leave (EL), allowing up to 600 days of EL to be encashable at retirement, along with the option to encash EL during service as well. It also recommends that proposals related to half-pay leave, casual leave and similar categories be considered favourably.

The Staff Side has additionally sought full salary during the 365-day second spell of Child Care Leave (CCL), and has proposed that a family be defined as five units for the purpose of wage calculation.

Dearness Allowance Calculation Method

The memorandum also proposes changing how Dearness Allowance is calculated, replacing the current 12-month averaging method with a six-month average, since DA is already revised twice a year. It further calls for a separate Consumer Price Index specifically for government employees, distinct from the industrial worker index currently used, with appropriate weightage given to food, housing, education, healthcare and transportation costs.

Medical Benefits for Pensioners

The NC-JCM has also demanded that HRA and Leave Travel Concession (LTC) benefits be extended to pensioners, along with cashless medical treatment for both serving employees and retirees. It has further proposed the establishment of Central Government Health Scheme (CGHS) wellness centres in every district.

Background on the 8th Pay Commission

The Union Cabinet approved the terms of reference for the 8th Central Pay Commission in October 2025, with the commission headed by former Supreme Court judge Ranjana Prakash Desai. The panel, which also includes IIM Bangalore professor Pulak Ghosh as a part-time member and Petroleum Secretary Pankaj Jain as Member Secretary, is tasked with reviewing salaries, allowances and pension structures for central government employees.

Since March 2026, the commission has been conducting consultations across multiple states and union towns to gather input from employee representative groups, unions and other stakeholders, with further visits, including to Chennai and Puducherry, scheduled for August and September. The deadline for stakeholder responses to the memorandum was extended to June 15, while the window for submitting supporting data remains open until July 31.

The NC-JCM's demands are not final and will be weighed by the commission before it submits its recommendations, which the government will then need to consider and approve. If accepted, the changes would mark one of the most significant revisions to central government pay and pension structures since the 7th Pay Commission.

(The above story first appeared on LatestLY on Jul 26, 2026 01:26 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).