8th Pay Commission update: ₹69,000 minimum salary, 3.833 fitment factor proposed in new memorandum

The memorandum has been finalised by the drafting committee and shared with constituent organisations for further representation, according to NC-JCM Staff Side Secretary Shiva Gopal Mishra.

₹69,000 minimum pay proposed

One of the key proposals in the memorandum is the revision of minimum basic pay to ₹69,000 for a five-unit family, along with a fitment factor of 3.833 for salary and pension revision.

The proposal has been worked out based on estimated household expenditure on food, housing, education, healthcare, fuel, and other essential needs.

Proposal for a higher annual increment

The Staff Side has also proposed increasing the annual increment rate from 3% to 6%, stating that the current structure does not adequately reflect inflationary pressures and cost-of-living changes.

HRA revision recommended

The memorandum has suggested revision of House Rent Allowance (HRA) to:

• 40% for X category cities

• 35% for Y category cities

• 30% for Z category cities

Pay structure restructuring

NC-JCM has also proposed rationalisation of pay levels, including merger of several existing grades:

• Level 2 & 3 to be merged into Level 3

• Level 4 & 5 into Level 5

• Level 7 & 8 into Level 8

• Level 9 & 10 into Level 10

Upgradation of Level 5 employees to Level 6 as a one-time measure

Submission and process update

The proposals will now form part of stakeholder inputs considered by the 8th Pay Commission in framing its recommendations for central government employees and pensioners.