8th Pay Commission News: With the 8th Pay Commission process gaining traction, employee representatives have started putting forward their demands — and some of them could significantly reshape salary structures, allowances and pension benefits for central government staff.
In its latest memorandum submitted to the 8th Pay Commission, the Staff Side of the National Council Joint Consultative Machinery (NC-JCM) has proposed a wide-ranging overhaul of allowances from merging dearness allowance (DA) with basic pay at 25%, to tripling several benefits and linking them more closely with inflation.
DA merger at 25%: A key demand
One of the most notable proposals is merging DA (and DR for pensioners) with basic pay and pension once it crosses 25%. Currently, the DA/DR stands at 60%, with the key allowance being raised by 2% by the Centre in the latest round of revision.
“The prices should be calculated based on market rates and not on government rates which varies up to 25%. We proposed that 8th CPC may recommend to merge if the DA / DR crosses 25% with basic pay and basic pension,” the memorandum said.
This is significant because DA is currently revised twice a year to offset inflation and merging it with basic pay can permanently increase salary and pension base. It can also impact other components like HRA, gratuity and retirement benefits.
The Staff Side has argued that DA should remain fully inflation-linked but also be merged periodically to avoid distortion in pay structure.
Why changes in DA calculation are being sought
The memorandum points out gaps in the current system:
-Consumer Price Index (CPI) may not reflect actual spending patterns of government employees
-Current 12-month average method delays real impact of inflation
-Proposal: shift to 6-month average (aligned with DA revisions)
-Suggestion to use market prices instead of government-controlled rates
HRA revision: Up to 40% of basic pay
Given rising housing costs, a major revision in House Rent Allowance (HRA) has been proposed:
X cities (50 lakh+ population): 40% of basic pay
Y cities: 35%
Z cities: 30%
Additionally, the memorandum suggests HRA should be linked to DA for automatic revision and city classification should be reviewed every 5 years. HRA for pensioners has also been suggested — a major new demand.
3x hike in multiple allowances
The Staff Side has proposed tripling several allowances, citing rising living costs:
Transport Allowance → 3x increase
Daily Allowance (travel) → 3x increase
Patient Care / Nursing Allowance → 3x increase
Uniform Allowance → 3x increase
Most of these are also proposed to be linked with DA, ensuring automatic adjustment with inflation.
Risk and hardship allowance: Minimum Rs 10,000/month
For employees in high-risk roles:
Railways, defence, healthcare, sanitation, fire services
The demand is minimum Rs 10,000 per month as Risk & Hardship Allowance to be linked with DA for periodic increase.
Air travel for all on duty?
A notable operational demand:
-Allow air travel for all employees on official duty
-Permit AC taxi for road travel
Reason: last-minute travel often makes train reservations difficult.
Overtime and extra duty compensation
The memorandum highlights:
Staff shortages leading to longer working hours
Many employees not compensated for overtime
Proposal:
Employees outside Factories Act should get overtime at single rate (Basic + DA); major revision in education & children benefits; children Education Allowance (CEA) should be Rs 10,000/month per child. Hostel subsidy of Rs 35,000/month. Coverage extended up to post-graduation and professional courses. Higher benefits for Divyang children.
Other key demands:
Additional qualification allowance → 10% of basic pay
Cooking allowance → increase to Rs 3,000/month
Sports incentives → remove cap on increments
Night duty allowance → no basic pay ceiling
Where does the 8th Pay Commission stand now?
The government had notified the Terms of Reference (ToR) for the 8th Pay Commission last year, setting the stage for review of salary structure, revision of allowances and pension-related changes. While the commission’s recommendations are still awaited, memorandums like this indicate what employee unions are pushing for.
What could change if proposals are accepted?
If implemented, these proposals could lead to higher basic pay due to DA merger, significant increase in monthly take-home pay, better inflation protection via DA-linked allowances, and improved benefits for pensioners.
However, final decisions will depend on the Pay Commission’s recommendations and government approval.