8th Pay Commission: ₹69,000 minimum pay, 6% annual increment in fresh union pitch

A sweeping reset of salaries, pensions and service benefits for central government employees has been proposed ahead of the 8th Pay Commission, with employee representatives pitching a far more generous framework to take effect from 2026. 

The National Council (Joint Consultative Machinery) (NC-JCM), which represents multiple staff unions, has submitted its final memorandum outlining a reworked compensation system aimed at addressing inflation, career stagnation and changing social needs, The Economic Times reported.

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₹69,000 minimum pay, higher annual rise

Among the most striking proposals is a near fourfold jump in the minimum basic salary, from ₹18,000 at present to ₹69,000. To achieve this, the panel has suggested a fitment factor of 3.83, which would uniformly raise pay and pensions across levels.

The committee has also pitched a higher annual increment of 6%, arguing that the current rate is insufficient to keep up with rising costs. It has been further recommended that the revised pay structure be rolled out from January 1, 2026, without any lag.

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A major structural change has been suggested in how salaries are organised. Instead of the existing 18-level pay matrix under the 7th Pay Commission, the draft proposes compressing them into just seven broader bands.

The idea is to simplify progression and reduce delays in promotions. Under this model, entry-level pay would begin at ₹69,000, while the next slabs could start at ₹83,200 and ₹1.12 lakh. Mid-tier roles may see starting basic pay ranging roughly between ₹1.35 lakh and ₹2.15 lakh.

The same fitment multiplier would be applied across all categories, ensuring a consistent hike from the lowest to the highest ranks.

The memorandum strongly backs bringing back the Old Pension Scheme for employees recruited after January 1, 2004—a long-standing demand among government staff.

It also proposes increasing pension benefits, with payouts pegged at 67% of the last drawn salary and family pension at 50%.

On career progression, the panel has recommended a minimum of five promotions or financial upgrades over a 30-year career span, along with a review of pensions every five years.

Expanded benefits and leave policies

Beyond salaries, the proposals place emphasis on social security and employee welfare. The committee has called for a revised House Rent Allowance structure, with rates touching 30% at the base level and higher in metro cities.

Additional suggestions include enhanced insurance cover, better compensation for deaths during service, and removal of limits on leave encashment.

Family-friendly policies also feature prominently. Maternity leave has been proposed to increase to 240 days, alongside new provisions such as parent care leave and extended paternity leave.

While the NC-JCM’s recommendations carry weight due to its wide representation of employee bodies, they are not binding. The final call on pay revisions and structural changes will be taken by the central government as part of the 8th Pay Commission’s deliberations.