8th Pay Commission Update: ₹65,000 Minimum Salary Demand Raised in Pune Meet, Big HRA & Allowance Changes Proposed
The discussion around the 8th Pay Commission is gaining momentum, with fresh developments emerging from a key meeting held in Pune. Employee unions have put forward major proposals that could significantly increase salaries, allowances, and pension benefits for millions of central government employees and pensioners.
The meeting, chaired by Ranjana Prakash Desai, saw detailed discussions with various employee groups on May 4 and 5, 2026. The proposals presented during this meeting indicate a possible major overhaul in pay structure ahead of the commission’s final recommendations.
₹65,000 Minimum Salary Demand Gains Attention
One of the biggest highlights of the Pune meeting was the strong demand to raise the minimum basic salary from the current ₹18,000 to ₹65,000.
Employee representatives argued that rising inflation and increasing living costs have made the current salary structure inadequate. A higher minimum wage, they say, is essential to ensure a decent standard of living for government employees.
Alongside this, a fitment factor of 3.8 has been proposed, compared to 2.57 under the 7th Pay Commission. Since the fitment factor plays a crucial role in salary calculation, any increase here could lead to a substantial jump in overall pay.
Proposal to Revise Family Unit Formula
Another important suggestion focuses on how minimum wages are calculated. Currently, salaries are based on a 3-member family unit.
However, employee organizations have proposed expanding this to a 5-member family, including parents. This change aims to reflect real-life financial responsibilities more accurately and ensure fair wage determination.
Major Changes Suggested in HRA and TA
Allowances were a major focus area during the discussions, with several proposals aimed at boosting take-home salaries.
House Rent Allowance (HRA)
- Current rates: 10%, 20%, 30%
- Proposed rates: 12%, 24%, 36%
- Suggestion to delink HRA from DA (Dearness Allowance)
This move could significantly increase monthly income, especially for employees living in metro and urban areas.
Travel Allowance (TA)
- Proposal to increase TA by 2.5 times, similar to earlier pay commission revisions
Annual Increment
- Suggested increase from 3% to 5%, which would accelerate salary growth over time
Pension Reforms and OPS Demand
Pension reforms remained a key topic in the meeting. Employee unions raised concerns about the existing National Pension System (NPS) and demanded the return of the Old Pension Scheme (OPS).
Key proposals include:
- Restoration of OPS for employees under NPS
- Minimum 10% guaranteed return under pension schemes
- Family pension to remain at 50% of salary throughout
- Additional pension benefits to start from age 75 instead of 80
These changes aim to provide better financial security to retirees.
Gratuity and Retirement Benefits
Significant revisions have also been suggested for retirement benefits:
- Increase maximum gratuity limit to ₹50 lakh
- Change calculation formula from 1/4th to 1/3rd of salary
- Remove the 33-year service cap and calculate based on actual years of service
These proposals could result in a much higher retirement payout for employees.
Focus on Teachers and Promotion Issues
The meeting also highlighted long-standing issues faced by teachers and other employees regarding promotions.
Employee groups pointed out that teachers are not receiving benefits under certain career progression schemes, leading to disparities. The commission has reportedly assured that these concerns will be reviewed and addressed.
What This Means for Employees
If even a portion of these proposals is accepted, it could lead to:
- Significant increase in take-home salary
- Better housing and travel allowances
- Improved retirement benefits and pensions
- More fair and realistic salary calculations
Final Takeaway
The Pune meeting has brought fresh hope for millions of central government employees and pensioners. While these proposals are still under discussion, they indicate the direction in which the 8th Pay Commission may move.
A final decision will depend on the commission’s recommendations and government approval. However, if implemented, these changes could mark one of the biggest salary revisions in recent years.
