8th Pay Commission: ₹69,000 Basic Salary and 6% Annual Increment Proposed

Significant news has emerged for Central Government employees regarding the 8th Pay Commission. Employee organizations have submitted a comprehensive proposal that could lead to substantial changes in salary, pension, and benefits. The Draft Committee of the National Council (JCM) has handed over its recommendations to the government, intended for implementation starting from 2026. These proposals aim to address the economic needs of employees through several major adjustments.

Increase in Minimum Basic Salary and Fitment Factor

The primary demand from employee unions is a massive hike in the minimum basic salary, while currently set at ₹18,000, the proposal seeks to raise it to ₹69,000.83 has been proposed. If accepted by the government, this would result in a significant jump in both salaries and pensions for employees. The Draft Committee has also requested that the new pay scales be implemented effectively from January 1, 2026.

Annual Increment and Simplification of Pay Matrix

To balance employee income with rising inflation, a demand for a 6% annual increment has been made. This rate is higher than the current increment levels. The objective of this change is to ensure that the purchasing power of employees is maintained over time. On top of that, the draft suggests simplifying the existing pay matrix. The current 18 levels under the 7th Pay Commission are proposed to be reduced to just 7 levels. This is expected to make the promotion process smoother and prevent employees from stagnating at a single level for long periods.

Focus on Pension and Career Promotion

The proposal places significant emphasis on pension schemes and career progression, while one of the most critical demands is the restoration of the Old Pension Scheme (OPS), particularly for employees who joined service after 2004. Also, there is a proposal to set the pension at 67% of the last drawn salary and the family pension at 50%. Regarding career growth, the draft recommends at least 5 promotions or financial upgrades during a 30-year service tenure.

Enhancement of Allowances and Leave Facilities

The Draft Committee has suggested increasing the House Rent Allowance (HRA), which could reach 30% or more in metro cities. Other recommendations include better insurance coverage, higher compensation for death while on duty, and the removal of the current limit on leave encashment. In terms of leave benefits, the proposal includes increasing maternity leave to 240 days, along with enhancements in paternity leave and the introduction of parent care leave.

All these recommendations are currently in the form of a proposal submitted to the government. The final decision rests with the Central Government. However, the recommendations of the National Council Joint Consultative Machinery (JCM) are considered highly significant as they represent the interests of millions of employees and pensioners.