8th Pay Commission: From minimum wages to fitment factor to housing. 7 key NCJCM demands explained

1. Minimum wage fixed at Rs 69,000

NCJCM has proposed a revised minimum monthly wage of Rs 69,000, calculated on the basis of retail prices of essential commodities and household needs for a standard five-unit family.

2. Fitment factor of 3.833

A uniform fitment factor of 3.833 has been recommended for revising existing basic pay and pensions under the new pay structure.

3. Annual increment increased to 6%

The memorandum proposes raising the annual increment from 3% to 6% to better reward performance and improve career progression.

4. Rationalisation and merger of pay levels

NCJCM has suggested merging multiple pay levels to simplify the structure:

• Level 2 & 3 to Level 3

• Level 4 & 5 to Level 5

• Level 7 & 8 to Level 8

• Level 9 & 10 to Level 10

Level 5 employees to be upgraded to Level 6 as a one-time measure

5. Simplified pay matrix structure

A streamlined pay structure up to Level 13 has been proposed to reduce complexity and minimise disparities across cadres.

6. Housing and allowance formula

The wage computation includes structured allowances such as:

• 7.5% for housing

• 20% for fuel, electricity, and water

• 25% for skill development

• 25% for additional expenses including festivals and recreation

7. Nutrition-based wage calculation

The proposed wage is benchmarked on ICMR-recommended 3490 kcal dietary requirement, ensuring adequate nutrition through a balanced food basket including protein, dairy, fruits, and vegetables.

Employee bodies argue that the revised structure is necessary to align wages with real consumption patterns and inflation trends, while also strengthening government employment as a model employer.

Cabinet clears 2 pc DA/DR hike for central government employees, pensioners

The approval to release an additional instalment of DA to central government employees and DR to pensioners with effect from January 1, 2026, represents an increase of 2 per cent over the existing rate of 58 per cent of the Basic Pay/Pension, to compensate for the price rise.