8th Pay Commission: Staff-Side Drafting Committee Begins Key Meeting; ₹54,000 Minimum Pay, 7% Annual Increment, OPS Among Major Demands

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8th Pay Commission: Staff-Side Drafting Committee Begins Key Meeting; ₹54,000 Minimum Pay, 7% Annual Increment, OPS Among Major Demands




The Drafting Committee of the National Council (Staff Side) under the Joint Consultative Machinery (NC-JCM) has begun an important week-long meeting in New Delhi to finalise a common memorandum of demands for submission to the 8th Central Pay Commission (CPC). The memorandum will represent the interests of over 1.2 crore central government employees and pensioners.

This development follows the allocation of office space to the 8th Pay Commission at the Chandralok Building on Janpath, indicating that the commission has formally entered its operational phase. The commission is headed by Justice Ranjana Prakash Desai.

Why This Meeting Matters

Employee unions aim to present a unified and comprehensive charter of demands before the commission begins structured consultations.

There has been dissatisfaction among several federations within the staff side of the NC-JCM. Many have expressed concern that key issues they previously raised were not included in the official Terms of Reference (ToR) of the 8th Pay Commission. As a result, this drafting exercise is seen as an effort to formally consolidate and strongly reassert those demands through a detailed memorandum.

Unions want to ensure that matters such as the fitment factor, pension reforms, and annual increments are prominently placed before the commission, even if they are not explicitly mentioned in the ToR.

Fitment Factor: Multi-Level Proposal Under Discussion

One of the central issues is the proposed revision of the 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 Structure

  • Levels 1–5: 3.00

  • Levels 6–12: 3.05 to 3.10

  • Levels 13–15: 3.05 to 3.15

  • Levels 16–18: Up to 3.25

The objective of this tiered approach is to provide stronger correction at lower levels while preventing pay compression at higher levels. Level 1 corresponds to entry-level Group C posts, while Level 18 is the Cabinet Secretary rank.

Illustrative Impact (As Proposed)

  • Levels 1–5: ₹54,000 to ₹87,600

  • Levels 6–12: ₹1,08,000 to ₹2,44,300

  • Levels 13–15: ₹3,61,500 to ₹5,74,000

  • Levels 16–18: ₹6,57,300 to ₹8,12,500

These figures are proposals from federations and not official recommendations of the commission.

Demand for Higher Annual Increment

Currently, central government employees receive a 3% annual increment. Federations are demanding an increase to 7%, while FNPO has proposed at least 5%.

Unions argue that a higher increment rate is necessary to ensure meaningful career-long financial growth, especially amid rising inflation and increasing living costs.

Proposal to Expand Family Unit Definition

Another key demand is expanding the definition of the “family unit” from three members to five, to include dependent parents.

If accepted, this change could significantly affect wage calculation formulas, potentially resulting in a higher minimum basic pay.

Allowances and Retirement Benefits

The memorandum also includes proposals related to allowances and post-retirement benefits:

  • Fixed Medical Allowance (FMA): Increase from ₹1,000 to ₹20,000 per month for pensioners in non-CGHS areas.

  • Leave Travel Concession (LTC): Allow encashment in cash.

  • Leave Encashment: Raise the retirement ceiling from 300 days to 400 days.

These demands reflect growing concerns over healthcare expenses and financial security after retirement.

OPS Restoration: A Sensitive Pension Issue

One of the most politically significant demands is the restoration of the Old Pension Scheme (OPS).

Several federations have renewed calls to scrap the National Pension System (NPS) and the Unified Pension Scheme (UPS) and return to a defined-benefit OPS framework. Unions argue that a guaranteed pension system is crucial for post-retirement security.

The government, however, maintains that the NPS model is more financially sustainable in the long run.

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 uncertain how many of these demands will be accepted, the meeting marks a significant step in shaping the future salary structure, pension system, and allowances for central government employees over the next decade.

For now, employee unions are firmly focused on ensuring that the proposed 3.25 fitment factor, 7% annual increment, and restoration of OPS remain central to the 8th Pay Commission deliberations.

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