8th Pay Commission: A comprehensive memorandum has been submitted to the 8th CPC by the National Council (Staff Side) of the Joint Consultative Machinery (JCM). The conditions were finalized and a 51-page memorandum has been submitted by the Council after a draft committee meeting on April 13, 2026.
8th Pay Commission Recommendations
The memorandum recommended a minimum wage of Rs. 69,000 for a family of five units and a fitment factor of 3.833 for pay revisions. The recommendation was made keeping in mind the growing prices of essential components such as water, electricity, clothing, food, housing, and technology and skill development charges along with expenses on festivals, recreational facilities and marriages.
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It was argued by the Council that the payment must be considered as a human capital investment and economic growth instead of just expenditure. It was also suggested by the memorandum that the annual increment rate be revised to 6 percent from the existing 3 percent.
The Memorandum also proposed the merger of several pay levels to create a streamlined career progression path. Level 2 merger has been proposed with level 3, and so on.
House Rent Allowance (HRA)-Will Middle Class Dreams Come True
The memorandum also proposed a revision in HRA by recommending a HRA of 40 percent for X class (50 lakh and above population) cities, 35 percent for Y class (5-50 lakh population) and 30 percent for Z class (below 5 lakh population) cities.
More 8th Pay Commission Suggestions
It was also proposed that the old pension scheme should be restored for employees who have joined services after January 1, 2004. It was also suggested that the pension rate should be made a constant at 67 percent of the last drawn pay with family pension at 50 percent. Over a period of 30 years, an employee should receive at least 5 financial upgrades or promotions, with pension revisions every 5 years.
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