8th Pay Commission News: Central Government Employees To Receive 283% Hike in Salary and Pension? Check Details
Employee unions have asked the 8th Pay Commission for an INR 69,000 minimum salary, driven by a 3.83 fitment factor. This proposal would result in a 283 per cent hike for nearly 36 lakh workers. Key demands include restoring the Old Pension Scheme and doubling annual increments to 6 per cent.
In a major push for wage restructuring, central government employee unions have formally proposed a minimum basic salary of INR 69,000, marking a 283 per cent increase from the current levels. The demand was presented by the staff side of the National Council (Joint Consultative Machinery) during the first round of formal engagements with the 8th Pay Commission, held from April 28 to April 30.
The proposed hike is based on a 3.83 fitment factor, which employee representatives argue is necessary to align government wages with modern living costs, including surging expenses in healthcare, education, and digital connectivity. 8th Pay Commission 2026: What Is It, Who Benefits and When Will Salaries Increase?
The 3.83 Fitment Factor Explained
The "fitment factor" is a multiplier used to convert existing basic pay into the new pay structure. Under the previous 7th Pay Commission, this multiplier was set at 2.57, resulting in the current minimum salary of INR 18,000. If the commission accepts the proposed 3.83 multiplier:
- Minimum Salary: Would rise from INR 18,000 to approximately INR 68,940.
- Minimum Pension: Would see a corresponding jump to roughly INR 34,470, up from the current INR 9,000.
- Mid-Level Pay: Salaries across all pay bands would undergo a similar upward revision.
Restoring the Old Pension Scheme
Beyond salary figures, the restoration of the Old Pension Scheme (OPS) has emerged as a central point of contention. Employee bodies, led by NC-JCM Secretary Shiva Gopal Mishra, urged the commission to abolish the National Pension System (NPS) and the recently introduced Unified Pension Scheme (UPS). Union representatives argued that the current market-linked models fail to provide the financial security of the non-contributory OPS, which guarantees 50 per cent of the last-drawn salary as a pension.
Structural Reforms and Career Growth
The memorandum submitted to the commission also calls for a fundamental shift in how the government manages employee growth and increments:
- Annual Increments: A proposal to double the annual increment from 3 to 6 per cent.
- Promotion Guarantees: A demand for at least five time-bound promotions during a 30-year career to prevent professional stagnation.
- Allowances: Proposals to triple existing allowances - such as House Rent Allowance (HRA) and transport - and link them directly to Dearness Allowance (DA) hikes. 8th Pay Commission Latest News: Employees Demand INR 69,000 Minimum Pay and 3.83 Fitment Factor.
Next Steps and Deadlines
Following the initial consultations, the 8th Pay Commission has extended the deadline for stakeholders to submit their detailed memorandums to May 31, 2026. This extension was granted to address technical issues reported by various associations during the online filing process. The commission, chaired by Justice Ranjana Prakash Desai, is scheduled to conduct a series of regional interactions throughout May and June, including visits to Hyderabad, Srinagar, and Ladakh. The panel has been given an 18-month window from its November 2025 constitution to submit its final recommendations to the government.
(The above story first appeared on LatestLY on May 03, 2026 07:29 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).
