8th Central Pay Commission
NFCGA-EWO Seeks ₹76,000 Minimum Pay, 40% HRA and Sweeping Reforms for Central Government Employees
Federation's memorandum to the 8th CPC calls for a 3.5x fitment factor, bimonthly DA revision, doubled leave encashment and a raft of new allowances covering millions of employees and pensioners.
The National Federation of Central Government and Allied Employees & Workers Organisations (NFCGA-EWO) has submitted a comprehensive memorandum to the 8th Central Pay Commission (8th CPC), demanding sweeping reforms in pay, allowances, pension, healthcare and service conditions for Central Government employees, pensioners, contractual workers and employees of autonomous bodies.
The federation argues that rising cost of living and increasing work responsibilities require a complete overhaul of the compensation structure to ensure a dignified standard of living for government staff.
Key Demands at a Glance
| Demand | Proposal |
|---|---|
| Minimum Basic Pay | ₹76,000 |
| Fitment Factor | 3.5 times |
| Effective Date | 1 January 2026 |
| Annual Increment | 5% of Basic Pay |
| HRA Rates | 40%, 35%, 30% |
| DA Revision | Every two months |
| Bonus | One month salary, no ceiling |
| EL Encashment Limit | 300 → 600 days |
How the ₹76,000 Figure Was Arrived At
The federation has proposed fixing the minimum pay of Central Government employees at ₹76,000 by adopting the entry-level pay of Supreme Court employees as the benchmark.
According to the memorandum, the current entry-level pay in the Supreme Court starts at Pay Level-3, with an entry salary of ₹21,700. Applying a fitment factor of 3.5 would result in a revised minimum pay of approximately ₹76,000.
| Existing Entry Pay | Fitment Factor | Proposed Minimum Pay |
|---|---|---|
| ₹21,700 | 3.5 | ₹76,000 |
The organisation argues this would help remove the long-standing pay disparity between Central Government employees and staff of institutions such as the Supreme Court.
Annual Increment & Timeline
NFCGA-EWO has demanded an annual increment of at least 5% of basic pay for all employees, while retaining the existing January and July increment cycles. The federation has requested that all 8th CPC recommendations be implemented with retrospective effect from 1 January 2026 — exactly ten years after the 7th CPC came into force. It has also sought that these benefits extend to employees of autonomous organisations under the Government of India.
Family Consumption Unit Revised Upward
The memorandum recommends revising the family consumption unit concept used for minimum wage calculations, raising the effective multiplier used in pay computation.
| Family Member | Unit Value |
|---|---|
| Husband | 1.0 |
| Wife | 1.0 |
| Father | 1.0 |
| Mother | 1.0 |
| Child | 0.8 |
| Child | 0.8 |
| Total | 5.6 (rounded to 5.5) |
Dearness Allowance: A Faster Revision Cycle
The federation states that the current Dearness Allowance formula does not fully compensate employees for inflation, and has put forward three major changes:
- DA revision every two months instead of every six months
- DA to be merged with basic pay once it exceeds 25%
- Revision in the CPI methodology used for calculating DA
HRA Could Rise Sharply Across City Categories
One of the biggest demands in the memorandum relates to House Rent Allowance, with proposed increases across all city categories.
| City Category | Existing HRA | Proposed HRA |
|---|---|---|
| X Cities | 27% | 40% |
| Y Cities | 18% | 35% |
| Z Cities | 9% | 30% |
The federation has also demanded reimbursement of brokerage charges paid while renting houses in major cities. Notably, the memorandum seeks extension of HRA benefits to pensioners as well.
New and Enhanced Allowances
Beyond core pay and HRA, the memorandum proposes several targeted allowances:
| Allowance | Demand |
|---|---|
| Qualification Allowance | 10% of Basic Pay |
| Cooking Allowance | ₹3,000 per month |
| Dress Allowance | Triple existing amount |
| Patient Care Allowance | Triple existing amount |
| Digital / WFH Allowance | New allowance |
The federation has also demanded restoration of overtime allowance, calculated on Basic Pay plus Dearness Allowance.
Advances: Housing, Vehicle and Beyond
House Building Advance up to ₹2 Crore
- Maximum limit raised to ₹2 crore
- Lower interest rate than bank loans
- Coverage for home renovation and expansion
- Inclusion of solar panels and rainwater harvesting projects
- Loan waiver in case of death or medical invalidation
Four-Wheeler Advance of ₹10 Lakh
The federation has sought a four-wheeler advance of up to ₹10 lakh at concessional interest rates, along with Medical, Education, Festival, Funeral, Digital and Natural Calamity advances.
Leave Reforms
| Leave Type | Proposal |
|---|---|
| EL Encashment | Increase to 600 days |
| LTC Encashment | 20 days EL every LTC |
| Maternity Leave | 9 months |
| Paternity Leave | 30 days |
| Miscarriage Leave | 45 days |
| Child Care Leave | Extend to fathers |
Insurance: CGEGIS Cover up to ₹3 Crore
| Category | Monthly Contribution | Insurance Cover |
|---|---|---|
| Group A | ₹3,000 | ₹3 Crore |
| Group B | ₹1,500 | ₹1.5 Crore |
| Group C | ₹1,000 | ₹1 Crore |
CGHS and LTC Overhaul Sought
The memorandum criticises the current functioning of CGHS wellness centres and hospitals, demanding expanded infrastructure, inclusion of autonomous body employees, universal cashless treatment, stronger accountability of empanelled hospitals, and dedicated mental health and critical illness coverage.
On Leave Travel Concession, the federation has asked for hometown LTC every year, all-India LTC every two years instead of four, four foreign trips during a career under LTC, and extension of LTC benefits to pensioners.
Service Conditions and Career Progression
- Transfer policy: Transparent transfer rules, minimum tenure at a station, mandatory recorded reasons, and protection against arbitrary transfers
- Cadre review: Uniform review every five years, implementation of NFU provisions, faster promotions and removal of stagnation
- Contractual staff: Regularisation opportunities after five years of service, recruitment weightage for outsourced staff, and review of the MTS system
- Governance: Review of CCS (RSA) Rules, 1993, and wider JCM representation including smaller departments and federations
Why It Matters
The NFCGA-EWO memorandum is among the most comprehensive sets of demands submitted so far to the 8th Pay Commission. If accepted, it could substantially reshape salaries, allowances, healthcare, insurance and welfare measures for millions of Central Government employees and pensioners. The ₹76,000 minimum pay and 40% HRA proposals are expected to draw significant attention from employee unions as consultations for the 8th CPC continue.
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