What Central Government Employee Bodies Want From 8th Pay Commission?

With the 8th Pay Commission Drafting Committee meeting scheduled today, discussions around the central government employee and pensioner organisations' expectations have gained momentum. Among the most talked-about demands are a fitment factor of 3.25, a 7 per cent annual increment, and an increase in leave encashment at retirement from 300 days to 400 days. These proposals are being widely debated across employee unions and representative bodies.

Last month, the Federation of National Postal Organisation (FNPO) submitted a letter to the National Council (Joint Consultative Machinery - Staff Side), outlining key demands. According to a report by The Economic Times, the organisation has called for a multi-level fitment factor along with a 5 per cent annual increment, among other revisions.

The detailed 60-page letter, submitted by FNPO Secretary General Sivaji Vasireddy, who is also a member of the NCJCM (Staff Side), includes recommendations such as fitment factors ranging between 3.0 and 3.25 for different employee levels based on the Akroyd formula. The proposal also supports a 5 per cent annual increment and suggests continuing with the existing 7th Pay Commission pay matrix system to ensure clarity and predictability in pay fixation and career progression.

Similarly, Manjeet Singh Patel, who is set to represent the Confederation of Central Government Employees at the February 25 meeting, shared his proposed suggestions with ET Wealth Online. These include a fitment factor of 3.2, either biannual increments or a 7 per cent annual increment, and expanding the family unit for pay calculations from three to five members.

Additional proposals include increasing leave encashment at retirement from 300 to 400 days, raising the fixed medical allowance from Rs 1,000 to Rs 20,000 per month in areas without a CGHS facility, maintaining a clear salary gap between different employee levels, introducing a streamlined promotion policy across departments, and allowing Leave Travel Concession (LTC) to be availed in cash form.

Meanwhile, C Srikumar, General Secretary of the All India Defence Employees Federation, told to ET Wealth Online that his organisation would recommend expanding family units to five members, including parents, for minimum pay calculations. Other suggestions include adding a 10 per cent additional component to address technical needs such as internet connectivity, ensuring five time-bound promotions over a 30-year career span, restoring the Old Pension Scheme in place of the National Pension System and Unified Pension Scheme, and extending Children's Education Allowance to cover postgraduate and professional courses.

As employee bodies continue to consolidate their demands, the upcoming meeting is expected to play a crucial role in shaping the direction of the 8th Pay Commission's recommendations.