8th Pay Commission: ₹69,000 minimum basic pay, higher HRA and increment rate — What changes NC-JCM seek?

The National Council of the Joint Consultative Machinery (NC-JCM), has submitted its recommendations to the 8th Pay Commission. The main central government employees’ body has proposed changes to the salaries and retirement benefits of central government employees and pensioners.

The 8th Pay Commission was constituted on November 3, 2025 under the chairmanship of Justice Ranjana Prakash Desai, with Professor Pulak Ghosh as Member (Part-Time) and Pankaj Jain as Member Secretary. Under its terms of reference, the commission has been given 18 months from its constitution to submit its final report to the central government.

However, the report can be submitted only after the commission completes its consultations with eligible employee unions and associations. Here are the key demands raised by the NC-JCM before the 8th Pay Commission.

The employees' body has proposed raising the minimum basic pay for Level 1 employees from ₹18,000 to ₹69,000, implying a fitment factor of 3.833, according to a report by The Economic Times.

Source: ET Online

It has also recommended merging certain existing pay levels. Under the proposal, the minimum basic pay for Levels 2 and 3 employees could be merged into a single pay scale at ₹83,200.

It has also proposed raising the pension payout from the current 50% to 67% of an employee's last drawn pay. It has also recommended increasing the family pension rate from 30% to 50%.

Central government employees currently receive an annual increment of 3% on basic pay. The NC-JCM has proposed doubling this rate to 6% to account for rising inflation.

The NC-JCM has recommended increasing house rent allowance (HRA) rates from the existing 30%, 20% and 10% to 40% for X-category cities, 35% for Y-category cities and 30% for Z-category cities, respectively.

These proposed rates would translate into higher monthly HRA for employees, depending on the city where they are posted.

Central government employees can currently encash up to 300 days of accumulated earned leave at retirement. The employees' body has proposed doubling this limit to 600 days.

The leave encashment is calculated based on admissible pay, including basic pay and dearness allowance (DA).

The NC-JCM has also raised demands relating to the revival of the old pension scheme (OPS), more promotions, a higher child education allowance,and improved healthcare benefits, the news report stated.

However, all these proposals are just recommendations. The actual changes in salaries, pensions and allowances will depend on what the 8th Pay Commission recommends and what the government ultimately approves.

For the 8th Pay Commission, January 1, 2026 is emerging as a possible effective date, in line with the 10-year pay revision cycle. However, the date has not yet been officially confirmed by the authorities.

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