8th Pay Commission: The Drafting Committee of the National Council (Staff Side) under the Joint Consultative Machinery will begin its crucial week-long meeting in New Delhi.
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8th Pay Commission News: Big news for central government employees and pensioners. The Drafting Committee of the National Council (Staff Side) under the Joint Consultative Machinery (NC-JCM) will begin a crucial week-long meeting in New Delhi. This meeting will finalize a common memorandum of demands to be presented to the 8th Central Pay Commission (CPC) on behalf of over 12 million employees and pensioners.
This meeting comes shortly after the 8th Pay Commission was allotted office space in the Chandralok Building on Janpath, indicating that the Commission has formally entered its operational stage. The Commission is chaired by Justice Ranjana Prakash Desai.
Why is this meeting important?
This drafting exercise is necessary because employee unions want to present a unified and detailed charter of demands before the Commission begins structured consultations.
However, there is clear discontent among the staff members of the NC-JCM. Several federations have expressed disappointment that several key demands they previously submitted to the government were not reflected in the 8th Pay Commission’s official Terms of Reference (ToR).
The current meeting is therefore being seen as an attempt to formally consolidate and strongly re-emphasize these demands through a comprehensive memorandum.
In simple terms, the employee unions want to ensure that issues such as the fitment factor, pension reforms, and increments are strongly presented to the Commission, even if they are not explicitly mentioned in the ToR.
3.25 Fitment Factor
One of the biggest issues is the proposed fitment factor.
The Federation of National Postal Organizations (FNPO) has suggested a “multi-level fitment factor” instead of a single uniform multiplier. The proposal is based on the “Ackroyd Formula,” which calculates the minimum living wage based on the essential needs of a family of four.
Proposed Fitment Structure
– Levels 1 to 5: 3.00 factor
– Levels 6 to 12: 3.05 to 3.10
– Levels 13 to 15: 3.05 to 3.15
– Levels 16 to 18: 3.25
The idea behind this tiered structure is to provide greater corrections to lower-level employees while also preventing “pay compression” at higher levels.
Level 1 represents entry-level Group C posts, while Level 18 corresponds to the Cabinet Secretary.
Example impact on salaries (as suggested by FNPO)
– Levels 1–5: Basic salary could be between ₹54,000 and ₹87,600
– Levels 6–12: ₹108,000 to ₹244,300
– Levels 13–15: ₹361,500 to ₹574,000
– Levels 16–18: ₹657,300 to ₹812,500
It is important to note that these figures are proposals from the Federation and not yet official recommendations from the Commission.
Demand for 7% Annual Increment
Another major demand relates to annual increments.
Currently, central government employees receive a 3% annual increment. Employee federations are demanding an increase to 7%, while the FNPO has suggested a minimum of 5%. The argument is that a higher increment rate will ensure better financial growth throughout an employee’s career, especially in an environment of rising inflation and cost of living.
Demand to Expand the Family Unit to Five Members
Federations are also pushing for an increase in the definition of “family unit” from three to five members, including dependent parents.
If accepted, this change could significantly impact the basic pay calculation used in the wage determination formula, potentially leading to a significant increase in salaries.
Allowances and Retirement Benefits
The charter of demands goes beyond basic pay:
– Fixed Medical Allowance (FMA): Proposed to increase it from Rs. 1,000 to Rs. 20,000 per month for pensioners in non-CGHS areas.
– Leave Travel Concession (LTC): Demand to allow cash encashment.
– Leave encashment: Increase the limit on retirement from 300 days to 400 days.
These demands reflect concerns about rising healthcare costs and financial security after retirement.
What’s next?
The week-long drafting session is expected to conclude with a consolidated memorandum, which will be formally submitted to the 8th Pay Commission.
While it remains to be seen how many of these demands the Commission accepts, today’s meeting is an important step in shaping the salary, pension, and allowance structure for central government employees for the next decade.
For now, employee unions appear determined to ensure that their core demands—a 3.25% fitment factor, a 7% annual increment, and the restoration of the OPS—remain at the center of the 8th Pay Commission discussions.
