8th Pay Commission: Central Government Employees Demand ₹69,000 Minimum Basic Pay and DA Merger

With the 8th Central Pay Commission nearing the final phase of its mandate, discussions surrounding salary revisions, fitment factors, and allowances have gathered significant momentum. Approximately 11 months have elapsed since the commission’s constitution, leaving a seven-month window to finalize and submit its recommendations to the central government.

To evaluate the economic requirements of employees and pensioners, the commission has been conducting stakeholder consultations across major hubs, including Delhi, Chennai, and Lucknow, with the next session scheduled in Mumbai. The final recommendations will directly impact around 50 lakh active central government employees and over 60 lakh pensioners.

Top Demands Submitted by Employee Unions and Federations

Employee federations and consultative bodies have formally placed five primary demands before the commission:

1. Automatic Merger of Dearness Allowance (DA)

With the Dearness Allowance standing at 60%, multiple unions have called for an immediate formal merger of DA into the basic pay structure. Several employee bodies have recommended introducing a rule whereby DA is automatically merged with basic pay whenever it breaches the 50% threshold. Additionally, there is a demand to revise DA quarterly (four times a year) rather than the current biannual schedule (January and July).

2. Substantial Hike in Minimum Basic Pay

Staff associations have proposed sharp upward revisions to the entry-level basic wage:

• National Council (Staff Side) Joint Consultative Machinery (NC-JCM): Proposed raising the minimum basic pay to ₹69,000.
• Maharashtra Old Pension Organization: Suggested fixing the minimum basic pay at ₹65,000.
• All India Defence Employees’ Federation (AIDEF): Urged a commensurate upward calibration aligned with real inflation and cost of living.

3. Minimum Guaranteed DA Revision

The Maharashtra Old Pension Organization has sought a guaranteed minimum floor of a 4% increase per DA cycle, while the NC-JCM has maintained that all adjustments must strictly mirror the actual inflation index.

4. Higher Fitment Factor Multipliers

The Indian Railway Technical Supervisors Association (IRTSA) and allied groups have petitioned for higher fitment multipliers, proposing ratios of 2.92, 3.50, and 3.80 across different cadres to ensure meaningful pay progression across pay matrices.

The commission has not yet issued any official statement regarding the finalized fitment factor or the timing of allowance integration, with ultimate determinations subject to Union Cabinet approval upon receipt of the final report.