8th Pay Commission: NC-JCM seeks Rs 69,000 minimum salary, 6% annual increment; check key demands

8th Pay Commission 2026: The staff side of the National Council–Joint Consultative Machinery (NC-JCM) has formally submitted a comprehensive 51-page memorandum to the proposed 8th Central Pay Commission (CPC), outlining a wide-ranging set of recommendations on pay revision, allowances, and structural reforms for central government employees and pensioners. The submission, made ahead of the stipulated deadline, is expected to shape early discussions around the contours of the next pay revision cycle.

Sharp hike proposed

At the core of the memorandum is a demand for a significant upward revision in salaries through a proposed fitment factor of 3.833, sharply higher than the 2.57 factor adopted under the 7th Pay Commission. If accepted, this would translate into a substantial increase in basic pay across levels.

The minimum basic salary is proposed to be raised from the current ₹18,000 to around ₹69,000, while the maximum salary has been pegged at ₹2,15,000. Such a revision would impact employees across all pay levels, from entry-level positions to senior ranks.

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What NC-JCM is and why it matters

The NC-JCM serves as an institutional mechanism for structured dialogue between the central government and its employees. It comprises representatives from staff unions and government officials, and plays a key role in deliberating on pay, allowances, service conditions, and employee welfare.

Shiv Gopal Mishra, Secretary of the staff side, confirmed that the memorandum was submitted within the prescribed timeline, adding that the recommendations were based on evolving employee needs and sustained inflationary pressures.

Double annual increments

A major highlight of the proposal is the demand to increase the annual increment rate from 3% to 6%. According to the staff side, the current increment structure does not adequately reflect rising living costs and inflation trends.

A higher increment rate, it argues, would ensure stronger annual income growth and help maintain purchasing power over time.

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Rationalisation of pay structure

The memorandum also proposes structural changes aimed at simplifying the existing pay matrix. Several pay scales, particularly in the lower and middle levels, are proposed to be merged to reduce complexity and eliminate anomalies.

Key proposals include:

Pay Scales 2 and 3 to be merged into a new Pay Scale 2 Pay Scales 4 and 5 to be merged into a revised Pay Scale 3 Pay Scale 6 to be reclassified as Pay Scale 4 Pay Scales 7 and 8 to be merged into Pay Scale 5 Pay Scales 9 and 10 to be merged into Pay Scale 6

Higher levels would be retained but recalibrated in line with the proposed fitment factor. The aim is to create a more streamlined and equitable pay structure.

Changes to family unit definition

Another significant recommendation relates to the definition of the “family unit,” which is crucial for determining allowances and minimum wage calculations.

The staff side has proposed increasing the standard family size from three to five members. It has also called for assigning equal unit value to male and female employees, with one unit each, and including dependent parents within the family unit.

These changes are expected to better reflect current household realities and improve the adequacy of compensation.

Focus on women employees and pensioners

The memorandum includes provisions aimed at strengthening gender parity and improving pensioner welfare. Proposals related to women employees focus on equitable benefits and inclusive family definitions, while pension-related recommendations seek enhanced financial security in line with revised pay structures.

Understanding the fitment factor

The fitment factor is a key component in pay revision exercises. It acts as a multiplier used to calculate new basic pay by applying it to the existing salary.

Under the proposed factor of 3.833, an entry-level basic pay of ₹18,000 would increase to approximately ₹69,000, highlighting the scale of the revision being sought.

Status of the 8th Pay Commission

As of now, the central government has not officially announced the constitution of the 8th Pay Commission. However, discussions around dearness allowance (DA), dearness relief (DR), and inflation-linked wage adjustments have gained traction, indicating growing momentum.

What lies ahead

The NC-JCM’s recommendations are advisory in nature, and the final decision will rest with the government and the Pay Commission once it is set up.

However, if key proposals—particularly the higher fitment factor and increased increment rate—are accepted, they could significantly boost incomes for lakhs of central government employees and pensioners, with wider implications for consumption and economic activity.