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8th Pay Commission: From fitment factor to pay matrix, know what proposals the employee unions have made

May 24, 2026 by Uma Shankar

The expectations of central employees and pensioners regarding the 8th Pay Commission are continuously increasing. When the Commission sought suggestions and memorandum from various employee organizations, many big employee unions demanded major changes in salaries, allowances, pensions and pay matrix. National Council-Joint Consultative Machinery (NC-JCM), Maharashtra Old Pension Organization and All India Defense Employees Federation (AIDEF) have made many important proposals to the government ranging from increasing the minimum basic salary to improving the fitment factor, dearness allowance and promotion system.

Now the pressure from employee organizations seems to be increasing on the 8th Pay Commission constituted for the Central Government employees. Different unions have submitted their detailed proposals to the government demanding major reforms in the wage structure. These organizations say that the current salary structure is not adequate in comparison to the rising inflation and cost of living.

There is a demand to increase basic pay

The biggest demand has come forward for increasing the minimum basic pay. NC-JCM and AIDEF have demanded increasing the minimum basic pay to Rs 69,000, while Maharashtra Old Pension Organization has proposed to increase it to Rs 65,000. It is believed that there can be a big increase in the salary of employees through increase in fitment factor.

Many changes have also been suggested regarding the pay matrix. NC-JCM has demanded implementation of a uniform unified pay matrix up to Level-13. Whereas Maharashtra Old Pension Organization has emphasized on making the pay levels simple and rational. AIDEF has suggested skill-based pay and cadre restructuring for technical employees.

This demand has been made regarding allowance

The unions have also sought relief from the government regarding allowances. Maharashtra Old Pension Organization has demanded to increase the House Rent Allowance (HRA) and Travel Allowance (TA) by 2.5 times. On the other hand, AIDEF has demanded risk allowance of Rs 10,000 to Rs 15,000 for defense employees.

The demand for increasing the annual salary i.e. annual increment is also included in the major issues. NC-JCM has suggested increasing the existing 3 percent increment to 6 percent, while Maharashtra organization has demanded to increase it to 5 percent. Apart from this, many proposals have also been made regarding Dearness Allowance (DA), pension system and Old Pension Scheme (OPS). Employees’ organizations say that the new salary structure should be directly linked to inflation so that the impact of rising prices on the income of employees can be reduced.

Also read- Does credit card bill become a hassle for you? Keep these things in mind to avoid heavy fines

About Uma Shankar

Uma Shankar writes about finance, business, and investment topics. He simplifies complex subjects like stock market, banking, tax, and cryptocurrency to help readers make informed financial decisions. Data-driven reporting is his strength.

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