As the 8th Central Pay Commission (CPC) engages in active consultations and discussions with unions and stakeholders, three major employee representative groups have raised demands regarding changed pay matrix and salary structures for central government employees and pensioners.
After the 8th CPC invited memoranda from eligible stakeholders last month, major employee groups, including the Indian Railways Technical Supervisors Association () and the Railways Senior Citizens Welfare Society (RSCWS), have submitted detailed suggestions.
Notably, they represent a number of employees and with the Indian Railways, and their suggestions are expected to play an important role in shaping the panel’s decisions over the coming months. The 8th CPC is expected to submit its final recommendations by mid-2027.
Pay hikes, DA increase, increments: What do Railway employees, pensioners want?
Indian Railways last month revised by 2%, effective from 1 January 2026, thereby taking the component to 60% of basic pay from 58% earlier. This impacted lakhs of employees, pensioners, family pensioners, and other eligible beneficiaries covered under the 7th CPC. Notably, Indian Railways is among the largest public sector employers in India.
From the 8th CPC, the two representative groups — IRTSA and — are seeking an overhaul of the salary structure, better pay levels, annual increments and allowances for employees, as follows:
Minimum Pay
- IRTSA has demanded that the be revised to ₹52,600 based on modern economic factors, and that different fixation factors be adopted.
- RSCWS did not specify a quantum but stated that minimum pay should be determined on a scientific basis and be calculated based on the price index as of 01.01.2026. “The calculation should realistically account for current consumption patterns, housing, education, healthcare and digital connectivity,” it stated.
Fitment factor
- IRTSA said that higher indexing of the should be followed for posts at level 6 in the Ministry of Railways for safety category posts. It has been proposed that the fitment factor for level 1 posts is 2.92, the fitment factor for posts level 6, 7 and 8 is between “2.92 x 1.2 = 3.50” and for mid-position posts in pay levels 9 to 12, the fitment factor of “2.92 x 1.3 = 3.80” should be adopted.
- Again, RSCWS did not specify how much, but stated that the fitment factor adopted by the 8th CPC “should ensure meaningful real income growth and not merely neutralise … should be adequate to correct historical erosion in real wages and pensions”.
Pay grade, pay matrix
- IRTSA has demanded that a five-grade structure be implemented, starting at level 7 for JEs; that pay levels for Junior Engineers and Senior Section be increased to better reflect their duties and the hazardous nature of their work; and that Senior Section Engineers be classified as Group B gazetted status.
- RSCWS has suggested that the 8th CPC should review spacing between levels to ensure adequate financial progression, especially between middle and higher levels. “The system should also allow smoother movement between levels,” it added.
Annual Increment
- IRTSA pointed to the need to disturb vertical relativities and horizontal parities with other categories. It said there is stagnation among the cadre, particularly in the SSE grade and stagnation of Graduate Engineers recruited as SSE in their entry grade.
- RSCWS noted that, as recognition of experience and service continuity, the existing 3% of should be reviewed, as it has become relatively modest due to inflation and longer career spans. It suggested an enhanced annual increment rate of 5% or a provision for periodic additional increments be considered after certain years of service to maintain motivation and financial progression.
Allowances
- IRTSA is pushing for allowances for Technical Supervisors, including night duty allowance, overtime allowance, and the Production Control Organisation (PCO) Allowance.
- RSCWS asked that important allowances, such as House Rent Allowance (HRA), Transport Allowance, and other duty-related allowances, be periodically reviewed in line with current living costs, especially in metropolitan and high-cost areas where expenses have risen substantially.
How will the 8th CPC make its decision?
Feedback and suggestions from stakeholders are expected to be taken into account when the commission finalises its reforms on remuneration and pensions. The has invited suggestions and memoranda until 15 June, following the formal opening of submissions in March.
Chaired by former Supreme Court Judge, Justice Ranjana Prakash Desai, the 8th CPC includes Professor Pulak Ghosh, tenured Professor of Finance and Member of the Economic Advisory Council to the Prime Minister, as a Member of the Commission, and as Member-Secretary. The panel is expected to collect data and analyse it to decide allowances, pension formula and salary structures for employee and retiree groups. It is expected to announce its decisions by mid-2027.
Further, based on past trends, once the pay commission’s recommendations are made, the rollout takes another two to three years to complete. This means that while hikes could be announced in 2027, they may only be fully implemented by 2029 or 2030.
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