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8th Pay Commission talks begin: staff push for 3.83 fitment factor, NPS scrapping and major allowance hike

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Discussions around the 8th Pay Commission have now formally begun and employee representatives have wasted no time in putting forward their expectations.

In the first meeting held on April 28, staff representatives shared a detailed set of demands which included a sharp increase in minimum pay and scrapping of the National Pension System (NPS).

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This matters as the commission’s recommendations will impact nearly 45 lakh central government employees and about 69 lakh pensioners.

According to a report in Financial Express, one of the biggest asks is a steep rise in the starting salary. Employee groups want the minimum pay to go up from ₹ 18,000 to ₹69,000. They argue that the current wages are no longer enough given today’s cost of living.

To support this, they have proposed a fitment factor of 3.83 for both salaries and pensions.

Beyond basic pay, employees are also pushing for better salary growth over time. They have suggested doubling the annual increment rate from 3% to 6%, as per report.

There is also a demand for at least five promotions over a typical 30-year career. Where promotions are delayed, employees want assured progression benefits along with extra increments when promotions do happen.

The memorandum also stressed on the need to update allowances and other benefits.

The report mentioned that employees have asked for a three-fold increase in allowances, especially those related to housing, education and risk. They also want these allowances to be linked with Dearness Allowance.

Further demands include interest-free loans and changes in leave rules such as allowing leave encashment of up to 600 days and introducing new types of leave.

Pensions are another major issue as employees are demanding an end to NPS and the Unified Pension Scheme (UPS). They want the restoration of the old non-contributory pension system.

The demands also cover pensioners. Suggestions include bringing One Rank One Pension (OROP) framework for civilian staff, ensuring pensions are revised regularly and restoring commuted pensions after 11 years.

Employee representatives have further asked the commission to step up interactions by holding more frequent meetings and consulting a wider range of departmental bodies.

They have also recommended that the pay commission visit field offices and remote areas to get a clearer picture of on-ground working conditions before finalising its recommendations.

As per the report, the commission has indicated that this is just the beginning. More meetings are expected and employee groups will be given further opportunities to present their views.

With discussions still at an early stage, it may take time before any final recommendations are made.



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