A major development has emerged around the upcoming 8th Pay Commission, as a prominent employee body has submitted an extensive proposal demanding sweeping changes to salary structures, allowances, and pay calculation methods for central government staff.
The Bharatiya Pratiraksha Mazdoor Sangh (BPMS), representing defence sector employees, has formally presented a memorandum to the commission. The proposal outlines significant revisions, including a sharp increase in minimum basic salary, a higher fitment factor, and enhanced annual increments.
One of the most striking demands in the memorandum is the revision of the minimum basic pay. Currently set at ₹18,000 under the 7th Pay Commission framework, the union has proposed increasing it to ₹72,000 per month.
According to BPMS, this demand is rooted in the sharp rise in living costs and the need to maintain a reasonable standard of living. The union argues that the current salary structure no longer reflects economic realities and must be updated to match present-day expenses.
To justify its demand, the union highlighted a significant increase in India’s per capita income. It noted that per capita income has risen from approximately ₹1.03 lakh in 2016–17 to around ₹1.92 lakh in 2024–25—an increase of nearly 87%. Based on this growth, the union believes a substantial salary revision is justified.
Another key recommendation is the revision of the fitment factor from the existing 2.57 to 4. The fitment factor is a crucial multiplier used to calculate revised salaries under a new pay commission.
If accepted, this change could result in a substantial jump in salaries across all levels of government employees. The union maintains that a higher fitment factor would better balance rising inflation with income growth, ensuring fair compensation.
BPMS has also recommended doubling the annual increment rate from 3% to 6%. The union emphasized that relying solely on Dearness Allowance (DA) adjustments is not sufficient to improve employees’ real income.
By increasing the annual increment, the proposal aims to provide consistent and meaningful growth in take-home pay, rather than temporary relief through periodic DA hikes.
In a notable shift, the union has proposed revising the assumed family size used in salary calculations. Currently considered as three members, BPMS has suggested increasing it to five.
The rationale behind this recommendation is that many employees financially support not just their spouse and children, but also their parents. Recognizing a larger family unit would help create a more realistic and inclusive salary framework.
The Government of India announced the formation of the 8th Pay Commission on January 17, 2025. Pay commissions are typically constituted every ten years to review and recommend changes to the salary, allowances, and pension structure of central government employees and retirees.
The commission is expected to submit its report within 18 months of its गठन, after which the government will take a final call on implementing the recommendations.
The commission has opened the door for feedback from all stakeholders, including employee unions, pensioners’ associations, and the general public. Suggestions can be submitted until April 30, 2026.
These inputs will play a crucial role in shaping the final recommendations, which are expected to impact millions of government employees and pensioners across the country.
While the demands put forward by BPMS are ambitious, they reflect growing concerns among employees regarding rising living costs and income adequacy. Whether the government accepts these proposals in full or introduces a moderated version remains to be seen.
For now, all eyes are on the 8th Pay Commission’s deliberations, as its recommendations are set to define the financial future of India’s central government workforce for the next decade.