8th Pay Commission: Major Demands Finalised by JCM, From Old Pension to Fitment Factor
The process for shaping the 8th Central Pay Commission gained momentum after the National Council (JCM) Staff Side held a significant meeting in the capital on 15 November. During this discussion, members outlined key expectations for the commission’s Terms of Reference (ToR) and agreed to formally submit these demands to the central government. The meeting focused on restoring the Old Pension Scheme (OPS), revising pension benefits, fixing the new fitment factor, restructuring pay scales, increasing allowances, and ensuring improved facilities for serving employees and pensioners.
Letter to Be Sent to the Prime Minister
A major decision taken in the meeting was to send detailed communication to the Prime Minister, Finance Minister, Cabinet Secretary, and relevant departments. This letter will request revisions in the proposed Terms of Reference, with special emphasis on including pension-related benefits and restoring the Old Pension Scheme. The JCM also demanded the removal of certain terms related to “unfunded cost” from references to non-contributory pension schemes.
Fitment Factor and Minimum Salary Inputs Requested
All employee unions have been asked to submit detailed suggestions regarding the fixation of minimum salary. These recommendations should consider factors such as food prices, cost of living, family unit requirements, and modern-day essential expenses linked to technology. The JCM will also evaluate proposals for the new fitment factor that will form the basis for revising salaries in the 8th Pay Commission.
Based on these inputs, the staff side will prepare a comprehensive memorandum to be submitted formally as part of the commission’s deliberations.
Discussion on New Pay Structure and Increments
Members agreed to propose a revised pay structure that includes suggestions on maximum salary, annual increments, and salary fixation rules. Issues related to promotions, MACP (Modified Assured Career Progression), pay anomalies across levels, and the effective implementation date of 8th CPC recommendations were also discussed. The aim is to create a uniform and balanced pay system that benefits employees across different categories.
Proposed Changes in Allowances and Facilities
A major part of the meeting revolved around allowances. The staff side resolved to send extensive proposals covering:
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Transport, travelling, daily, and overtime allowances
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Night duty allowance and risk allowance
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House Rent Allowance (HRA) and housing loan improvements
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Medical facilities, including CGHS and CSMA reforms
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Special considerations for women employees, nursing staff, security staff, and technical categories
In addition, suggestions were invited for rationalising allowances for employees working in high-altitude locations and North-Eastern regions.
Old Pension Scheme: The Core Demand
Restoring the Old Pension Scheme remains the JCM’s top priority. Additionally, the council will prepare proposals for the revision of pensions for all pre-2026 retirees. These demands include improvements in gratuity, commutation, family pension, and other retirement benefits. The JCM insists that all pension-related aspects must be formally included in the 8th CPC’s Terms of Reference.
Key Issues Discussed: A Summary
| Issue | Details |
|---|---|
| Letter to PM | Request to include OPS restoration and pension reforms in ToR |
| Pension Revision | Benefits for existing and family pensioners to be added |
| Changes in ToR | Remove references to unfunded cost in non-contributory pension schemes |
| Minimum Salary | To be based on calorie needs, living cost, food prices, family size |
| Fitment Factor | Suggestions invited for revised fitment formula |
| Maximum Pay | Proposal to revise highest pay levels |
| Pay Structure & Increment | New framework for pay, increments, promotions, MACP |
| Allowances | Revision of TA, DA, HRA, overtime, night duty, risk allowances |
| Special Categories | Focus on women, nurses, teachers, artisans, drivers, MTS |
| Medical Facilities | CGHS/CSMA improvements |
| Housing & HBA | Better housing benefits and home loan (HBA) reforms |
| Leave & LTC | Review of all leave rules and LTC conditions |
| Contract Employees | Proposal for regularisation of contractual and casual staff |
| Bonus & Group Insurance | Improvements in bonus rules and CGEGIS |
| OPS Restoration | Priority demand |
| Pension Revision for Pre-2026 | Improvements in family pension, gratuity, commutation |
Deadline for Suggestions: 15 December 2025
The JCM has instructed all associated unions and members to submit their documents and recommendations by 15 December 2025. These inputs will be compiled to prepare the final memorandum for the 8th Pay Commission. The purpose is to ensure that every employee category—whether serving or retired—can have their concerns properly represented before the government.
With several critical demands on the table, the upcoming months will be crucial in determining how the 8th Pay Commission shapes the future of central government salaries, pensions, and service conditions.
