8th Pay Commission may see minimum salary rise to Rs 69,000

NC-JCM has proposed a major increase in minimum pay for central government employees under the 8th Pay Commission, including a higher fitment factor and additional benefits. The recommendations could impact over 50 lakh employees and 65 lakh pensioners

New Delhi: The National Council–Joint Consultative Machinery (NC-JCM) has proposed a steep uplift for minimum pay of Central government employees in its common memorandum to the 8th Pay Commission, one month’s wages as gratuity and other benefits.

NC-JCM, the apex body of communication between the Central government (as employer) and its employees, proposed a fitment factor of 3.833, raising the minimum basic from Rs 18,000 under the 7th Pay Commission to Rs 69,000, the report from NDTV Profit said.

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Fitment factor is a multiplier that is used to revise salaries, based on factors such as cost of living and inflation and is then applied to existing basic pay to calculate new pay in a pay commission.

NC-JCM also proposed a 6 per cent annual increment, two increments on promotion, subject to a minimum benefit of Rs 10,000, etc.

The changes adopted by the new Pay Commission would affect over 50 lakh central employees and nearly 65 lakh pensioners.

The application of the fitment factor causes a uniform salary hike across levels. For instance, under the 7th Pay Commission, salaries were revised using a fitment factor of 2.57. The entry-level basic pay of Rs 7,000 under the 6th Pay Commission was multiplied by this factor, resulting in a starting salary of Rs 18,000 under the 7th Pay Commission at the minimum level.

The pay matrix has a total of 18 levels, with higher levels for senior government employees, who also receive allowances, including HRA, provident fund and other benefits along with basic pay.

The Federation of National Postal Organisations has asked the government to merge the 58 per cent dearness allowance with basic pay and give interim relief from the same date.

The salary increase will hinge on the fitment factor the government adopts, which analysts expect to exceed 2.5. Some employee groups have sought a fitment factor of 3.15, even though the official decision may take over a year, the report said.

MoS Finance Pankaj Chaudhary told Parliament in March that the 8th Pay Commission will make its recommendations on pay, allowances, pensions, and other benefits for central government employees. The 8th Pay Commission is expected to complete this work within 18 months from November 2025.