New Delhi: Central government employee unions have proposed a significant hike in salaries and benefits under the upcoming 8th Pay Commission, including a minimum basic pay of Rs 69,000 and a 6% annual increment. The recommendations, submitted by the National Council (Joint Consultative Machinery) (NC-JCM), aim to address rising living costs and improve long-term financial security for employees and pensioners.
The draft memorandum, reported by The Economic Times, outlines sweeping changes to the current pay structure, pensions, and allowances, with implementation proposed from January 1, 2026.
Major push for higher minimum pay
At the core of the proposal is a sharp increase in the minimum basic pay from the current Rs 18,000 (under the 7th Pay Commission) to Rs 69,000.
To achieve this, the committee has recommended a fitment factor of 3.83, which would uniformly raise salaries and pensions across all levels. This factor is used to multiply existing basic pay to arrive at revised figures.
In addition, unions have proposed an annual increment of 6%, higher than the current rate, to ensure wages keep pace with inflation over time.
Simplifying the pay structure
One of the key structural reforms suggested is the simplification of the existing pay matrix. The current system, which includes 18 levels, could be merged into seven broader pay scales.
According to the proposal:
- Entry-level pay may rise from Rs 18,000 to Rs 69,000
- The next levels could see minimum pay of Rs 83,200 and Rs 1.12 lakh
- Mid-level salaries may start from around Rs 1.35 lakh to over Rs 2.15 lakh
This restructuring is expected to reduce stagnation and make career progression smoother for employees.
Pension reforms in focus
The memorandum places strong emphasis on pension security. One of the major demands is the restoration of the Old Pension Scheme (OPS) for employees who joined service after January 1, 2004.
It also recommends:
- Fixing pension at 67% of the last drawn pay
- Family pension at 50%
- Pension revision every five years
These measures are aimed at ensuring financial stability for retirees amid rising living costs.
Career growth and job benefits
The proposal highlights the need for better career progression. It suggests that every employee should receive at least five promotions or financial upgrades over a 30-year service period.
Other key recommendations include:
- Removal of limits on leave encashment
- Improved compensation for employees who die while on duty
- Enhanced insurance coverage
Such measures are intended to improve job satisfaction and security across the workforce.
Allowances and social security measures
Unions have also called for a revision in allowances, particularly the House Rent Allowance (HRA). The draft suggests increasing HRA rates up to 30% at the minimum level, with higher rates for metro cities.
Additional proposals include:
- Increasing maternity leave to 240 days
- Introducing parent care leave
- Extending paternity leave duration
These changes reflect evolving family structures and workplace expectations.
What happens next
The NC-JCM represents a broad coalition of employee unions, making its recommendations influential in shaping discussions around the 8th Pay Commission. However, these proposals are not final and will be subject to government review and approval.
If accepted, even partially, the changes could result in one of the most substantial pay revisions for central government employees in recent years.
Conclusion
The demands placed before the 8th Pay Commission signal a strong push for higher wages, improved pensions, and better social security measures. While the final decision rests with the government, the proposals underline growing concerns over inflation and employee welfare.
A favourable outcome could significantly impact millions of central government employees and pensioners, reshaping India’s public sector pay landscape ahead of 2026.