8th Pay Commission: What are JCM’s Major Demands to the Centre Regarding Basic Pay, Pensions, Fitment, and Allowances?

8th Pay Commission: Central government employees and pensioners are eagerly awaiting the 8th Pay Commission. In this regard, several organizations—including the JCM—have placed various demands before the government.

8th Pay Commission: An atmosphere of uncertainty prevails among central government employees and pensioners regarding the 8th Pay Commission. New reports concerning this issue surface almost daily, further intensifying the employees’ anticipation. However, through this report today, we highlight the significant demands that the National Council (Staff Side) of the JCM (Joint Consultative Machinery) has placed before the Central Government and the Pay Commission. Let us examine the key elements included in their proposals:

Substantial Increase in Basic Pay

The JCM and various employee organizations have demanded that the minimum basic pay be increased from the current ₹18,000 to a range between ₹54,000 and ₹58,000. This demand is based on the ‘Aykroyd Formula,’ which takes into account rising inflation, the cost of living, and nutritional requirements.

Fitment Factor

Under the 7th Pay Commission, the fitment factor was set at 2.57; it is now proposed to be fixed within the range of 2.86 to 3.25. The organizations argue that a fitment factor of at least this magnitude is essential to ensure a respectable salary increment.

Pensions and Retirement-Related Benefits

It has been proposed that the minimum pension be increased to ₹20,000 per month. Furthermore, demands have been raised to revise the rates for additional pension benefits applicable at the ages of 65, 70, and 75 years. Currently, according to Central Government regulations, the provision for additional pension benefits commences only upon the completion of 80 years of age. The JCM argues that waiting until the age of 80 is too long, as health-related expenses rise significantly by this age; therefore, the JCM has put forward the following proposals:

At the age of 65: An additional increase of 5 percent in the basic pension.
At the age of 70: A demand to raise this additional increase to 10 percent.
At the age of 75: The additional increase should be raised to 15 percent.

Restoration of OPS

The JCM is demanding the complete restoration of the Old Pension Scheme (OPS) by abolishing the National Pension System (NPS) and the Unified Pension System (UPS). The JCM believes that since the NPS is market-linked, there is a risk of employees losing their money in the event of a stock market crash. Furthermore, there is no guarantee regarding the pension amount under this system.

Other Demands of the JCM

A proposal to increase the limit for leave encashment at the time of retirement from the current 300 days to 400 days.
A demand to merge 50 percent of the Dearness Allowance (DA) into the Basic Pay.
A demand has also been put forward for an annual increment of 5–7 percent, instead of the current 3 percent.