8th Pay Commission: Drafting Panel Convenes; 3.25 Fitment Proposal and 7 Percent Annual Raise in Focus

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 The long-awaited 8th Central Pay Commission has moved into a decisive stage. Today, the Drafting Committee of the National Council Staff Side under the Joint Consultative Machinery met in New Delhi for a week-long session. The goal is clear. Prepare a single memorandum of demands representing more than one crore central government employees and pensioners.

The meeting is chaired by NC-JCM Secretary Shiva Gopal Mishra. It comes soon after office space for the 8th Pay Commission was allotted at Chandralok Building, Janpath. The commission, headed by Justice Ranjana Prakash Desai, has now begun active functioning. Employee federations are working quickly to align their recommendations into one structured document.

Akroyd Formula and Variable Fitment Plan

The Federation of National Postal Organisations has proposed a multi-level fitment model. Instead of using one common multiplier, it suggests a graded structure ranging from 3.00 to 3.25.

FNPO Secretary General Sivaji Vasireddy stated that the proposal follows the Akroyd Formula. This method calculates minimum wages based on the essential nutritional and living needs of a four-member family.

Proposed fitment structure

• Levels 1 to 5

3.00 factor to strengthen salaries of lower pay bands

• Levels 6 to 12

3.05 to 3.10 factor to reflect higher technical and supervisory duties

• Level 16 and above

Up to 3.25 factor to avoid pay compression at senior ranks

Key Demands Beyond Basic Pay

The fitment factor is central, but it is not the only demand. Major federations such as the Confederation of Central Government Employees and the All India Defence Employees Federation have also placed strong proposals before the committee.

Annual increments

• Increase yearly increment from 3 percent to 7 percent

• FNPO suggests a 5 percent alternative

• Aim is to improve long-term salary growth

Family unit revision

• Expand family unit from 3 to 5 members

• Include dependent parents

• This change could raise basic pay calculations by about 66 percent

Medical and travel benefits

• Raise Fixed Medical Allowance from Rs 1,000 to Rs 20,000 per month for employees outside CGHS coverage

• Allow Leave Travel Concession in cash form

Retirement benefits

• Increase leave encashment ceiling from 300 to 400 days

Pension reforms

• Strong demand to restore the Old Pension Scheme

• Proposal includes scrapping NPS and UPS

The drafting committee is expected to consolidate these points into a unified charter that will shape the direction of the 8th Pay Commission discussions in the coming months.



Illustrative 8th CPC Pay Scale (Proposed by FNPO)
Level Status / Category 7th CPC Entry Pay (Rs) Proposed Fitment Factor Proposed Minimum Pay – 8th CPC (Rs)
Level 1Entry Level (Group C)18,0003.0054,000
Level 2Group C19,9003.0059,700
Level 3Group C21,7003.0065,100
Level 4Group C25,5003.0076,500
Level 5Group C29,2003.0087,600
Level 6Group B Entry35,4003.051,08,000
Level 7Group B44,9003.051,37,000
Level 8Group B47,6003.051,45,200
Level 9Group B53,1003.051,62,000
Level 10Group A Entry56,1003.101,74,000
Level 11Group A67,7003.102,09,900
Level 12Group A78,8003.102,44,300
Level 13Senior Administrative1,18,5003.053,61,500
Level 13ASenior Administrative1,31,1003.053,99,900
Level 14Senior Administrative1,44,2003.154,54,300
Level 15HAG1,82,2003.155,74,000
Level 16HAG+2,05,4003.206,57,300
Level 17Apex Scale2,25,0003.257,31,300
Level 18Cabinet Secretary2,50,0003.258,12,500

The drafting panel will stay in Delhi until early March to resolve gaps between various departmental suggestions. After they complete the discussions, they will forward the consolidated memorandum to Justice Ranjana Prakash Desai.
The 8th Central Pay Commission is likely to take effect from January 1, 2026, with retrospective benefit. However, employees will receive revised salaries and arrears only after the commission submits its final report and the Union Cabinet approves it.

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