8th Pay Commission News: Ever since the Centre notified the Terms of Reference (ToR) for the 8th Central Pay Commission last November, several employee representative bodies have expressed concern that many of their key demands were not adequately reflected in the final framework.
As the 8th Pay Commission process now gathers pace, expectations among central government employees and pensioners are steadily rising. This time, the debate is not confined to the fitment factor or revision in basic pay. A significant proposal has also emerged to raise the Fixed Medical Allowance (FMA) from Rs 1,000 per month to Rs 20,000 per month — particularly for employees and pensioners residing in areas not covered under the CGHS network.
Employee organisations began presenting their demands to the government in January last year, when the central government announced the formation of the 8th Pay Commission. The Finance Ministry too sought suggestions on the Terms of Reference (ToR) from the Staff Side of the National Council – Joint Consultative Machinery.
The staff side says that many of their key demands were not included in the final ToR. There was particular dissatisfaction regarding the lack of clarity on issues such as the fitment factor, OPS reinstatement, and medical facilities.
Recently, the 8th Pay Commission was allotted an office in the Chandralok Building on Janpath. The Commission is chaired by former Supreme Court judge Justice Ranjana Prakash Desai. This is being seen as a sign of the Commission entering its operational phase.
Drafting Committee Meeting: What was decided?
The process of finalizing the unified charter of demands began at a week-long meeting of the NC-JCM (Staff Side) Drafting Committee in the capital, which began on February 25th.
This draft includes several key demands related to approximately 1 crore central employees and pensioners.
The biggest proposal on FMA
The most discussed demand is to increase the Fixed Medical Allowance from Rs 1,000 to Rs 20,000 per month in non-CGHS areas.
Employee organisations argue that the current amount of Rs 1,000 is too low compared to current medical inflation. This amount is unfeasible, especially for pensioners living in rural or remote areas.
Unions say that since health expenses have increased exponentially, the medical allowance should also be increased realistically.
Fitment factor and annual increment
While the demand for a 3.25% fitment factor has been reiterated, a proposal has also been made to increase the annual increment from the current 3% to 7%.
Some organisations, such as the FNPO (Federation of National Postal Organisations), have suggested a 5% annual increase. Employees argue that a 3% increase with long service does not make a significant difference to actual income.
Family unit and Basic salary calculation
Another important demand is to increase the number of family units from 3 to 5, so that dependent parents can also be included. Unions claim that this could have a mathematical impact of up to 66% in the calculation of basic salary.
LTC, leave encashment, and retirement benefits
Demand for the payment of Leave Travel Concession (LTC) in cash
Proposal to increase the leave encashment limit from 300 to 400 days
Improvement in retirement benefits
OPS vs. NPS: The issue has heated up again
The demand for the full restoration of the Old Pension Scheme (OPS) was raised once again in the drafting committee. Unions have reiterated their pressure to implement OPS by abolishing NPS and UPS.
However, there has been no concrete indication from the government on this demand yet.
Why the dissatisfaction with the ToR?
The staff side alleges that many of their fundamental demands were not adequately addressed in the Terms of Reference issued by the government.
For this reason, the drafting committee is now preparing a strong and unified memorandum to present clear and concrete demands to the Commission.
What’s next?
All eyes are now on the formal proceedings of the 8th Pay Commission and its recommendations. If demands like increasing the FMA to Rs 20,000 are accepted, it could prove to be a major relief, especially for pensioners living in non-CGHS areas.
For now, employee organizations are busy strengthening their agenda. The coming months will reveal the extent to which the government accepts these demands—and how well the 8th Pay Commission meets employees’ expectations.