The Modi government in January this year announced setting up the 8th Pay Commission, which will, among several other steps, decide on salary and pension revision for over 1 crore central government employees and pensioners. Since the pay panel announcement, speculations are rife that the new pay panel may settle for a fitment factor in the range of 2.57 to 2.86. 2.57 was the fitment factor – the multiplication number used to revise salaries – adopted by the 7th Pay Commission, which saw the minimum basic salary rise from Rs 7,000 to Rs 18,000 – a 2.57 times jump.
Various reports suggest that the Staff Side of the National Council Joint Consultative Machinery (NC JCM) has sought a fitment factor higher than 2.57 – one that was fixed by the 7th Pay Commission. The NC JCM Staff Side is a group of representatives who negotiate with the government on behalf of central government employees.
Th Staff Side put forth in February this year as many as 15 demands to be included in the Terms of Reference (ToR), which is expected to be rolled out this month before the 8th Pay Panel starts working.
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Among its various demands, the Staff Side wants the pay panel to examine and revise the pay, allowances, pensions, and retirement benefits for central government employees, including industrial and non-industrial staff, All India Services, Defence and Paramilitary forces, Gramin Dak Sevaks, and other categories.
The Staff Side has also suggested that the panel must ensure a fair and comprehensive revision of salaries and benefits for central government employees effective from January 1, 2026. It said that the ToR needs to suggest the fixation of minimum wages based on the 15th Indian Labour Conference recommendations (1957) with modifications to reflect modern living standards.
One of the key demands it proposed was to merge non-viable pay levels, such as Level 1 with Level 2, Level 3 with Level 4, and Level 5 with Level 6, to reduce wage disparities.
Will the govt yield to Staff Side demand on fitment factor and other salary revision aspects?
It is highly unlikely that the new pay commission will accept the demands from the Staff Side entirely.
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