Central Govt Payroll Set for Massive Overhaul: 8th Pay Commission Demands Surge With Rs 69,000 Minimum Pay

The central government employee community has submitted a comprehensive list of demands to the 8th Pay Commission (8th CPC). This detailed memorandum, put forth by the draft committee of the National Council (Joint Consultative Machinery) (NC-JCM), outlines sweeping structural and financial changes for central government employees and pensioners.

The final memorandum, submitted on Monday, September 13, 2026, lays out common demands from various key associations and unions. These demands center around revising pay structures, enhancing family welfare benefits, and securing financial stability for government workers.

Key Financial Demands and Pay Scale Revision​

At the core of the memorandum are demands related to the basic pay structure. The draft committee has proposed a minimum basic pay of Rs 69,000, coupled with a fitment factor of 3.833 for existing employees and pensioners. Furthermore, a guaranteed annual increment of 6% of the basic pay is also sought.

C Srikumar, a member of the NC-JCM drafting committee, emphasized the justification for the minimum basic pay demand. He noted that the current practice of treating a family as three units should be replaced by treating it as five units, aligning with legal obligations under the Maintenance and Welfare of Parents and Senior Citizens Act.

For existing employees, the demands include a minimum five timescale promotion or financial upgradation/ACP within 30 years of service. Furthermore, the committee has sought significant life insurance coverage, requesting Rs 2 crore compensation for employees dying in accidents while on duty.

Major Structural and Pensionary Reforms Sought​

Beyond the immediate pay scales, the demands include sweeping reforms to long-term benefits. A critical demand is the restoration of the Old Pension Scheme (OPS) to employees recruited on or after January 1, 2004.

Pension reform is also central to the proposal. The committee mandates that the pension should be 67% of the last pay drawn, with the family pension pegged at 50%.

The proposal seeks comprehensive leave and compensation upgrades, including the accumulation of Earned Leave (EL) without any limit and encashment up to 600 days. Group Insurance is also requested, specifying Rs 1 crore for Group ‘C’ and Rs 1.5 crore for Group ‘B’.

Proposed Pay Scales for the 8th Pay Commission​

The NC-JCM draft committee has provided a detailed proposed pay matrix for the 8th CPC. The financial parameters for the new structure, effective from January 1, 2026, are presented in the following proposed pay scales:

• Pay Scale-1 (Level 1): Proposed minimum is Rs 69,000 (Existing: Rs 18,000–56,900).
• Pay Scale-2 (after merging Level 2 & 3): Proposed minimum is Rs 83,200 (Existing: Rs 21,700–69,100).
• Pay Scale-3 (after merging Level 4 & 5): Proposed minimum is Rs 1,12,000 (Existing: Rs 29,200–92,300).
• Pay Scale-4 (existing Level 6): Proposed minimum is Rs 1,35,700 (Existing: Rs 35,400–1,12,400).
• Pay Scale-5 (after merging Level 7 & 8): Proposed minimum is Rs 1,82,500 (Existing: Rs 47,600–1,51,100).
• Pay Scale-6 (after merging Level 9 & 10): Proposed minimum is Rs 2,15,100 (Existing: Rs 56,100–1,77,500).

The draft committee also ensured that the fitment factor of 3.833 is applicable across all renumbered Levels 11 through 17 (renumbered to Pay Scale 7–13).

Additional Welfare and Leave Enhancements​

The memorandum addresses several specialized employee benefits. Key additions include guaranteed minimum bonus of 30 days on actual Basic Pay and Dear Allowance (DA) Hike (to be linked in three slabs: 40% (X), 35% (Y), and 30% (Z)).

Leave entitlements are also being sought for increase and revision. Suggestions include raising the maximum maternity leave to 240 days without a two-child restriction, increasing Parent Care Leave to 60 days across the entire service, and ensuring 45 days of paternity leave for male employees.

Finally, the committee has also requested the merging of 18 employee levels from the 7th Pay Commission into seven, and proposing that pension commutation be restored after 11 years of service.