8th Pay Commission News: The Drafting Committee of the National Council (Staff Side) under the Joint Consultative Machinery (NC-JCM) will begin a key week-long meeting in New Delhi to finalise a common memorandum of demands to be presented to the 8th Central Pay Commission (CPC) on behalf of more than 1.2 crore central government employees and pensioners.
The meeting comes shortly after office space was allotted to the 8th Pay Commission at the Chandralok Building on Janpath, signalling that the commission has formally moved into its operational stage. The commission is chaired by Justice Ranjana Prakash Desai.
Why this meeting is important
This drafting exercise is significant because employee unions want to present a unified and detailed charter of demands before the commission begins structured consultations.
However, there has been visible dissatisfaction among the staff side of the NC-JCM. Many federations have expressed disappointment that several key demands they had earlier submitted to the government were not reflected in the official Terms of Reference (ToR) of the 8th Pay Commission.
Because of this, the current meeting is being seen as an attempt to formally consolidate and strongly reassert those demands through a comprehensive memorandum.
In simple terms, employee unions want to ensure that issues such as fitment factor, pension reforms, and increments are firmly placed on the commission’s table, even if they are not explicitly mentioned in the ToR.
3.25 Fitment Factor: Multi-Level proposal on the table
One of the biggest talking points is the proposed fitment factor.
The Federation of National Postal Organisations (FNPO) has suggested a “multi-level fitment factor” instead of a single uniform multiplier. The proposal is based on the “Akroyd Formula”, which calculates minimum living wages based on the essential needs of a four-member family.
Proposed fitment structure
Levels 1 to 5: 3.00 factor
Levels 6 to 12: 3.05 to 3.10
Levels 13 to 15: 3.05 to 3.15
Levels 16 to 18: Up to 3.25
The idea behind this tiered structure is to give stronger correction to lower-level employees while also preventing “pay compression” at higher levels.
Level 1 refers to entry-level Group C posts, while Level 18 corresponds to the Cabinet Secretary.
Illustrative pay impact (as proposed by FNPO)
Levels 1–5: Basic salary may range between Rs 54,000 and Rs 87,600
Levels 6–12: Rs 1,08,000 to Rs 2,44,300
Levels 13–15: Rs 3,61,500 to Rs 5,74,000
Levels 16–18: Rs 6,57,300 to Rs 8,12,500
It is important to note that these figures are proposals by federations and not official recommendations of the commission yet.
Push for 7% Annual Increment
Another major demand is related to annual increments.
Currently, central government employees get a 3% annual increment. Employee federations are demanding that this be increased to 7%, while FNPO has suggested at least 5%.
The argument is that a higher increment rate would ensure meaningful financial growth over an employee’s career, especially in an environment of rising inflation and living costs.
Demand to expand family unit to 5 members
Federations are also pushing to expand the definition of “family unit” from three to five members, to include dependent parents.
If accepted, this change could significantly impact basic pay calculations under wage determination formulas, potentially leading to a substantial upward revision in salaries.
Allowances and retirement benefits
The charter of demands goes beyond basic pay:
Fixed Medical Allowance (FMA): Proposal to increase it from Rs 1,000 to Rs 20,000 per month for pensioners in non-CGHS areas.
Leave Travel Concession (LTC): Demand to allow encashment in cash.
Leave Encashment: Increase the ceiling from 300 days to 400 days at retirement.
These demands reflect concerns around rising healthcare costs and post-retirement financial security.
OPS Restoration: Pension debate returns
Perhaps the most politically sensitive demand is the restoration of the Old Pension Scheme (OPS). Several federations have renewed their call for scrapping the National Pension System (NPS) and the Unified Pension Scheme (UPS), and reverting fully to OPS.
Unions argue that a defined-benefit pension system is essential for social security after retirement. The government, however, has consistently maintained that the NPS framework is financially sustainable in the long term.
What happens next?
The week-long drafting session is expected to conclude with a consolidated memorandum that will be formally submitted to the 8th Pay Commission.
While it remains to be seen how many of these demands find favour with the commission, today’s meeting marks an important step in shaping the salary, pension, and allowance structure for central government employees for the next decade.
For now, employee unions appear determined to ensure that their key demands — 3.25 fitment factor, 7% annual increment, and OPS restoration — remain firmly at the centre of the 8th Pay Commission discussions.