The 8th Pay Commission has received a fresh set of proposals from central government employee representatives as discussions on the next pay revision continue. A delegation from the Confederation of Central Government Employees and Workers recently met the commission and submitted a detailed memorandum outlining several key demands, including a significant increase in the minimum basic salary and changes to pension, allowances, and employee welfare policies.

The commission is currently gathering feedback from employee associations, government organizations, and other stakeholders before preparing its recommendations, which are expected to impact millions of serving employees and pensioners across the country.

8th Pay Commission Continues Stakeholder Consultations

As part of its nationwide consultation process, the 8th Pay Commission is scheduled to visit Odisha on July 6 and 7 to interact with employee organizations, institutions, and unions.

According to an official notice issued by the Ministry of Finance, interested central government bodies and employee associations have been invited to seek appointments for discussions during the commission's visit to Bhubaneswar.

These consultations are aimed at collecting suggestions before the commission finalizes its recommendations on salaries, pensions, and service-related benefits.

Demand for ₹69,000 Minimum Basic Salary

One of the biggest proposals submitted by the employee federation is the adoption of a 3.83 fitment factor under the new pay structure.

The fitment factor is the multiplier used to revise an employee's existing basic salary whenever a new pay commission is implemented.

If the proposed 3.83 fitment factor is accepted, the current minimum basic pay of ₹18,000 would increase to approximately ₹69,000, representing a substantial rise in the entry-level salary for central government employees.

However, it is important to note that this is a proposal made by employee representatives and has not been approved by the government or the Pay Commission.

Five Major Demands Placed Before the Commission

In addition to seeking a higher fitment factor, the employee organization has requested several policy changes intended to improve compensation, social security, and service conditions.

1. Restoration of the Old Pension Scheme (OPS)

The union has urged the government to restore the Old Pension Scheme (OPS) in place of the existing pension framework. According to employee representatives, the earlier pension system provided greater financial security after retirement.

2. Increase in House Rent Allowance (HRA)

Another key proposal is a revision of House Rent Allowance (HRA) rates.

The organization has recommended increasing HRA to:

• 40% for X-category cities
• 35% for Y-category cities
• 30% for Z-category cities

The memorandum also recommends restoring employee welfare advances such as House Building Advance and Computer Advance, which were previously available to eligible employees.

3. Rationalization of Pay Levels and Financial Upgradation

The employee body has called for the removal of existing pay anomalies through rationalization of various pay levels.

It has also proposed granting five financial upgradations during an employee's entire service period to ensure better career progression and salary growth.

4. Expansion of Healthcare Benefits

The memorandum seeks stronger healthcare support for both serving employees and pensioners.

Specifically, it recommends expanding medical coverage under:

• Central Government Health Scheme (CGHS)
• Ex-Servicemen Contributory Health Scheme (ECHS)

The objective is to improve access to quality healthcare and strengthen post-retirement medical benefits.

5. Policies for Contractual and Casual Workers

The employee federation has also highlighted the need for better social security measures for contractual and casual workers.

The proposal recommends introducing policies for their regularization wherever applicable, along with broader welfare measures aimed at improving employment security.

Recommendations Will Affect Over One Crore Beneficiaries

The recommendations of the 8th Pay Commission are expected to have a significant financial and administrative impact across the central government workforce.

According to official estimates, the commission's recommendations will directly affect nearly:

• 50 lakh central government employees
• Around 65 lakh pensioners

Together, more than 1.15 crore beneficiaries could be impacted once the government decides on the commission's final recommendations.

Final Recommendations Yet to Be Prepared

At present, the 8th Pay Commission is still in the consultation stage and is collecting suggestions from various stakeholders across different regions of the country.

The proposals submitted by employee unions—including the demand for a ₹69,000 minimum basic salary, restoration of OPS, higher HRA, improved healthcare, and better career progression—will be examined along with feedback from other organizations before the commission finalizes its report.

Employees and pensioners should note that these demands are currently proposals and no final decision has been announced by either the Pay Commission or the Central Government. The eventual recommendations and their implementation will depend on the commission's report and the government's approval.