The draft committee of the National Council (Joint Consultative Machinery), known as NC-JCM, has submitted its recommendations to the 8th Central Pay Commission (CPC). The 51-page memorandum proposes several major changes, with the most significant demand being to increase the minimum basic salary from Rs 18,000 to Rs 69,000. The committee has also proposed a fitment factor of 3.83, which would significantly raise existing salaries and pensions. It has also been demanded that the new pay scales take effect on January 1, 2026. An annual increment of 6 per cent and restoration of the Old Pension Scheme are among the other recommendations made by the committee.
Committee proposes 6% annual increment
To keep employees’ incomes in line with inflation, a 6 per cent annual pay increase has been demanded. Currently, this rate is lower than this. The draft calls for simplifying the current pay matrix. Currently, there are 18 levels in the 7th Pay Commission, which has been suggested to be reduced to 7 levels. This will make promotions easier and prevent employees from being stuck at the same level for long periods.
Focus on pension and promotion
The most important demands include the reintroduction of the Old Pension Scheme (OPS), especially for employees who joined after 2004. The committee also proposed increasing pensions to 67 per cent of the last salary, increasing family pensions to 50 per cent, and ensuring at least five promotions or upgrades in 30 years of service.
Increase in allowances and facilities
The draft suggests increasing HRA (House Rent Allowance), which could be 30 per cent or more in metro cities, better insurance cover, higher compensation for death in the line of duty, removing the cap on leave encashment, increasing maternity leave to 240 days, and recommending increased paternity leave and parental care leave.
All these recommendations are currently in the form of proposals. The final decision rests with the government. However, the recommendations of the National Council Joint Consultative Mechanism, an umbrella body of several unions, are considered crucial because it represents millions of workers.
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