8th Pay Commission: Double increment, high fitment factor…big demand of employee unions, what will the central government do now?

8th Pay Commission Salary Hike: Activities regarding the 8th Pay Commission have intensified. The schedule of meetings with stakeholders in several cities of the country—such as Delhi, Pune and Dehradun—has been released on the official website of the Commission. The objective of these meetings is to take suggestions from employees, organizations and other concerned parties, so that comprehensive reforms can be made in the pay structure.

Big memorandum and major demands of employees

The staff side of the National Council-Joint Consultative Machinery (NC-JCM) submitted a detailed 51-page memorandum on 14 April. The most important demand in this is to increase the minimum basic salary from Rs 18,000 to Rs 69,000. Also, it has been proposed to increase the annual increment from 3% to 6%. The employees have also demanded a fitment factor of 3.83, which is the main basis for wage revision.

Challenge of inflation and current salary

Employee organizations say that the current minimum salary of Rs 18,000 is not sufficient in today’s times. Due to rising inflation, continuous increase in expenses like education, health, food and housing, this salary is not able to meet the needs of an average 5-member family. A fitment factor of 3.83 has been demanded on the basis of Consumer Price Index (CPI), so that a balance can be created between salaries and inflation.

When will the salary increase be implemented?

The government had constituted the 8th Pay Commission on November 3, 2025 and it has been given 18 months to submit its recommendations. The tenure of the Commission is considered to be effective from January 1, 2026. However, the actual salary increase and payment of arrears is likely to take place in early 2027, due to which employees may get a lump sum benefit.

Other important demands: HRA and pension

Employee unions have also demanded changes in House Rent Allowance (HRA). According to the proposal, cities have been divided into X, Y and Z categories and given 40%, 35% and 30% HRA respectively. Apart from this, there is also a demand to restore the Old Pension Scheme (OPS) and increase the pension to 67% of the last basic pay, whereas at present it is 50%.

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