NC JCM Proposes 6% Annual Increment and ₹69,000 Minimum Basic Pay for 8th CPC

NC JCM Proposes 6% Annual Increment and ₹69,000 Minimum Basic Pay for 8th CPC

The National Council – Joint Consultative Machinery (NC JCM), representing central government employees, has officially submitted its memorandum to the 8th Central Pay Commission (CPC). This comprehensive proposal outlines a significant overhaul of the current salary structure, seeking to align wages with the rising cost of living and inflation.

Below is a detailed report on the key demands submitted by the Staff Side.

1. Minimum Pay & Fitment Factor

The NC JCM has proposed a dramatic increase in the entry-level salary to ensure a living wage that accounts for health, productivity, and dignity.

• Proposed Minimum Pay: ₹69,000 (Up from the current ₹18,000 under the 7th CPC).
• Proposed Fitment Factor: 3.833.The fitment factor is the multiplier used to arrive at the new basic pay from the old one. A factor of 3.833 would ensure a uniform salary jump across all pay levels.

2. Annual Increment Revision

One of the standout proposals in the memorandum—as seen in the provided document—is the doubling of the annual increment rate.

• Existing Rate: 3%
• Proposed Rate: 6%The Staff Side argues that the current 3% increment is insufficient to keep pace with real-world inflation and the increasing financial requirements of employees as they progress in their careers.

3. Proposed Merger of Pay Scales

To streamline the pay matrix and improve career progression, the NC JCM has recommended merging several existing pay levels. This move aims to reduce disparity and consolidate the grade structure.

4. Additional Key Highlights

The 51-page memorandum also touches upon several other critical areas:

• HRA Indexing: House Rent Allowance (HRA) to be indexed to Dearness Allowance (DA) for automatic adjustments.
• Family Unit Revision: Proposing that the minimum wage calculation be based on 5 units (instead of 3), acknowledging the legal and social responsibility of employees to support dependent parents.
• Old Pension Scheme (OPS): A renewed demand for the restoration of the Old Pension Scheme for all employees.
• Leave Benefits: Proposals to increase Maternity Leave to 240 days and introduce 45 days of Paternity Leave.
• Gratuity: Recommendation for one month’s wages as gratuity without the 33-year service ceiling.

What Happens Next?

The 8th Pay Commission, chaired by Justice Ranjana Prakash Desai, will now review these proposals. Consultations with various stakeholders are scheduled throughout April and May 2026. While the NC JCM has proposed an implementation date of January 1, 2026, the final decision rests with the Union Cabinet after the Commission submits its official report.

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