8th Pay Commission: NC-JCM Puts Forward Key Demands

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8th Pay Commission: NC-JCM Puts Forward Key  Demands




The staff side of the National Council–Joint Consultative Machinery (NC-JCM) has submitted a detailed memorandum to the upcoming 8th Pay Commission, highlighting major demands related to pension reforms for central government employees and pensioners.

The proposal outlines several changes aimed at improving retirement benefits, social security, and pension structure.

Key Highlights of Pension Demands

1. Equal Fitment Factor for Employees & Pensioners

NC-JCM has recommended a fitment factor of 3.833 for both employees and pensioners.
It has also suggested that arrears be paid from 1 January 2026.

2. One Rank One Pension for Civilian Employees

The proposal seeks extension of the One Rank One Pension (OROP) concept to civilian pensioners.
This would ensure equal pension for employees retiring at the same rank, irrespective of retirement date.

3. Restoration of Old Pension Scheme

The committee has demanded scrapping of:

  • National Pension System (NPS)
  • Unified Pension Scheme (UPS)

It has called for reinstating the Old Pension Scheme (OPS), citing concerns over market-linked risks in NPS.

4. Increase in Gratuity Limit

  • Proposed increase from ₹25 lakh to ₹75 lakh
  • Removal of ceiling (currently 16.5 times emoluments)
  • Calculation based on 25 working days instead of 30 days

5. Faster Restoration of Full Pension

Currently, full pension is restored after 15 years of commutation.
NC-JCM proposes reducing this period to 11 years.

6. Increase in Pension & Family Pension

  • Full pension: 50% → 67% of last pay drawn
  • Family pension: 30% → 50%
  • Extended enhanced family pension up to 70 years of age

7. Additional Pension Based on Age

A progressive increase in pension has been suggested:

  • 65 years: 70%
  • 70 years: 75%
  • 75 years: 80%
  • 80 years: 85%
  • 85 years: 90%
  • 90 years: 100% of last pay drawn

8. Merger of DA/DR with Basic Pay

It has been proposed that Dearness Allowance (DA) and Dearness Relief (DR) be merged with basic pay once they reach 25%.
This would increase overall pension benefits.

9. Leave Encashment Limit Increase

  • Current: 300 days
  • Proposed: 600 days
    Employees may also be allowed partial encashment during service.

10. Expansion of CGHS Facilities

Under the Central Government Health Scheme (CGHS):

  • Expansion from 81 to 150 cities
  • Extension of cashless treatment to pensioners

Conclusion

The NC-JCM memorandum presents a comprehensive set of reforms aimed at strengthening pension benefits under the 8th Pay Commission.

However, these are recommendations only. Final decisions will depend on the government’s approval once the Pay Commission submits its report.

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