Central government employees may see a major overhaul in salaries and benefits if the is accepted. The draft committee of the National Council (Joint Consultative Machinery), known as NC-JCM, has submitted its final memorandum, outlining what it believes should change from 2026, reported The Economic Times.
The proposals focus on higher basic pay, better pension security and improved allowances, reflecting rising living costs and changing family needs.
At the centre of the demands is a sharp jump in minimum basic pay to Rs 69,000. The committee has suggested a fitment factor of 3.83, which would significantly raise existing salaries and pensions, according to the report. It has also asked for all revisions to be implemented from January 1, 2026, without delay.
Alongside this, an annual increment of 6% has been proposed, which is higher than the current rate. The idea is to ensure salaries keep pace with inflation over time.
The draft also recommends simplifying the current pay matrix. It suggests merging 18 levels under the 7th Pay Commission into just seven broader pay scales. This, according to the committee, would make career progression smoother and reduce stagnation.
The table shared with the memorandum shows how salaries could rise across levels. For example, the lowest pay level, which currently starts at Rs 18,000, could move up to Rs 69,000. Similarly, the next levels could see minimum pay rising to Rs 83,200 and Rs 1.12 lakh after merging existing levels. Mid-level employees may see their basic pay starting from around Rs 1.35 lakh to over Rs 2.15 lakh, depending on their position. For higher levels, the same fitment factor would apply, ensuring a uniform increase across the board, the report mentioned.
In simple terms, the entire pay structure is being reworked to offer fewer levels but higher starting salaries at each stage.
One of the most significant demands is the restoration of the Old Pension Scheme for employees who joined service after January 1, 2004. The committee has also proposed that pension should be fixed at 67% of the last drawn pay, with family pension at 50%.
Career growth has also been highlighted. The draft suggests that every employee should get at least five promotions or financial upgrades over a 30-year service period. It also calls for pension revisions every five years.
The memorandum pushes for better social security and allowances. It proposes a higher House Rent Allowance structure, with rates going up to 30% at the minimum level and even higher for metro cities.
There are also demands for improved insurance cover, higher compensation for employees who die on duty, and removal of limits on leave encashment. Maternity leave has been proposed to increase to 240 days, while new provisions like parent care leave and longer paternity leave have also been suggested.
The NC-JCM represents a wide group of employee unions and associations, making this memorandum an important document for the 8th Pay Commission’s review. However, these are still recommendations, and the final decision will rest with the government.
If even part of these proposals is accepted, it could lead to one of the most significant pay revisions for central government employees in recent years.