NC-JCM Submits Memorandum to 8th Pay Commission; Seeks ₹69,000 Minimum Pay, OPS Restoration
It has also demanded extending HRA and LTC benefits to pensioners and ensuring cashless medical treatment for both employees and retirees
After a series of extensive brainstorming sessions, the Drafting Committee constituted by the Staff Side of the National Council (JCM) has submitted its memorandum to the 8th Central Pay Commission (CPC) on April 14, 2026, putting forward a wide-ranging set of demands covering pay, allowances, pension, and employee welfare.
The memorandum proposes a significant revision in the salary structure, including a minimum pay of ₹69,000 for Central government employees with a fitment factor of 3.83 for existing employees. It also calls for an increase in the annual increment from 3% to 6% and guarantees at least five promotions over a 30-year service span.
Key Pay and Allowance Proposals
Among the major structural changes suggested are the merger of multiple pay scales to reduce disparities and simplify the pay matrix. The Staff Side has also recommended defining a family as five units for wage calculation and introducing a special allowance to meet technological expenses.
On allowances, the memorandum proposes revised House Rent Allowance (HRA) rates at:
- 40% for cities with a population above 50 lakh
- 35% for cities with 5–50 lakh population
- 30% for towns with population below 5 lakh
In addition, a Risk and Hardship Allowance of ₹10,000 per month has been demanded, along with ₹2 crore ex-gratia compensation in case of death during official duty.
The Staff Side has also sought flight entitlement for all employees, Parents Care Leave, and expansion of the Children Education Allowance up to post-graduation level.
Strong Push for Pension Reforms
A major highlight of the memorandum is the demand to scrap the National Pension System (NPS) and Unified Pension Scheme (UPS) and restore the Old Pension Scheme (OPS).
The Staff Side has proposed that:
- Pension should be 67% of last drawn basic pay
- One Rank One Pension (OROP) be extended to civilian employees
- Commuted pension should be restored after 11 years instead of 15 years
- Pension should be revised every five years
It has also demanded extending HRA and LTC benefits to pensioners and ensuring cashless medical treatment for both employees and retirees. Additionally, the memorandum calls for establishing CGHS wellness centres in all districts.
Addressing Concerns of Pensioners
The memorandum has addressed concerns of existing pensioners who feared exclusion from the 8th CPC. It emphasises that pensioners, having devoted a significant part of their lives to public service, must not face discrimination.
Economic Impact Debate
While the demands are seen as ambitious, questions remain about their fiscal implications and whether the 8th Pay Commission—and subsequently the government—will accept such recommendations.
Responding to these concerns, C. Srikumar, a member of the Standing Committee of the National Council (JCM), strongly defended the proposals.
“Central Government employees deserve better treatment. Our memorandum provides full justification for these genuine demands,” he said.
Srikumar highlighted that government employees—including industrial workers, armed forces personnel, paramilitary forces, and administrative staff—play a critical role in policy implementation and service delivery across the country.
“They serve the nation round the clock. The COVID-19 pandemic and lockdown period clearly demonstrated their commitment,” he added.
He further stressed that attracting talent into government service requires competitive wages and benefits, noting that employees undergo rigorous selection through competitive examinations.
Government Can Absorb the Cost: JCM
Addressing concerns about the financial burden, Srikumar pointed out that:
- India is currently ranked 4th in global GDP (2025) with an economy of about $4.3 trillion, growing at around 6.5%
- Expenditure on salaries and pensions accounts for only 12–15% of the Union Budget (including defence pensions)
- Excluding defence, it is about 7.1% on salaries and 4% on pensions
“The government is well-positioned to absorb the financial implications of a meaningful wage revision,” he asserted.
He also emphasised that a significant portion—nearly 30% of wages—returns to the government through taxes, further offsetting the fiscal impact.
Call for Equity and Justice
Srikumar strongly opposed the coexistence of different pension systems:
“There cannot be two sets of employees—one under a non-contributory pension scheme and another under contributory schemes like NPS or UPS. The 8th CPC must ensure justice to NPS employees.”
He reiterated that the Staff Side has carefully considered the interests of both employees and pensioners.
“We will present our case effectively before the Pay Commission. After all, wage revision happens only once in ten years,” he concluded.
Conclusion
The memorandum reflects high expectations from the 8th Pay Commission, seeking not just salary revisions but a comprehensive overhaul of service conditions, welfare measures, and pension systems. Its acceptance, even partially, could have far-reaching implications for government finances as well as employee morale.
