Pay Matters- Minimum Pay Rs.69,000, Fitment 3.883, Annual Increment 6%: Memorandum to 8th CPC by Staff Side of NC- JCM

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Pay Matters- Minimum Pay Rs.69,000, Fitment 3.883, Annual Increment 6%: Memorandum to 8th CPC by Staff Side of NC- JCM

Pay Matters – Minimum Pay Rs.69,000, Fitment 3.883, Annual Increment 6%: Memorandum to 8th Central Pay Commission by Staff Side of NC- JCM

(No. NC-JCM-2026/8th CPC dated 14-04-2026)

JCM
STAFF SIDE OF NATIONAL COUNCIL – JCM
for
Central Government Employees
MEMORANDUM 
Submitted to
8th Central Pay Commission
on

Pay Matters

Q 1. What concerns / views do you have related to pay matters? Select those which are applicable

  • Basic Pay
  • Minimum Pay
  • Increment / Annual Increment
  • Level in Pay Matrix
  • Maximum of Pay Level
  • Any Other

Answer :- (1626 WORDS & 9756 CHARACTERS)

Central Government Employees are the backbone of Government of India and plays a very important role in implementing its policies and programs and ensure that the same reaches the citizens throughout the country. The major workforce are in the Group C & B category who are Industrial Employees in the Railways and Ministry of Defence. Pay is the foundation of Dignity, Motivation and Efficiency in Public Service. 8th CPC must ensure that real wages are protected and reasonably enhanced and not merely adjusted.

pay-matters-memorandum-to-8th-cpc-by-nc-jcm

Minimum Pay must be based on a scientific living wage formula covering Food, Housing, Education, Health Care, Transport and the Technological / Digital Needs. The Present system of treating a family as 3 Units should be dispensed with and the Family should be treated as 5 Units (employee 1 Unit, Spouse 1 Unit (No Gender Discrimination), 2 Children, 0.8 Units each of the parents 0.8 Units. This works out to a total of 5.2 Units (Rounded off to 5 Units). This is in conformity with the legal obligations under the Maintenance and Welfare of Parents and Senior Citizens Act which mandates Children to support dependent parents. It is pertinent to mention here that in the Social Security Code 2020 in the definition of “family” dependent parents, and female employees can include their parent-in-laws as part of their family. The fact is that Government services is not merely contractual but a status that carries expectation of fairness and dignity. The observations of the Hon’ble Supreme Court in Bhupendra Nath Hazarika Vs State of Assam highlight that the legitimate aspirations of employees should not be frustrated and that the government must act as a model employer by ensuring fairness, trust, and transparency in its treatment of employees. The current Minimum Pay is inadequate and must ensure a decent standard of living and not subsistence.

Food and Nutrition Norms

The earlier 2700 Kcal norm is inadequate.

The ICMR recommendation of ~3490 Kcal should be adopted, especially for physically demanding work.

The food basket must include:

  • Adequate protein sources (milk, eggs, meat, fish)
  • Dairy consumption (~30-35 litres/month for 5 units)
  • Fruits, vegetables, and balanced nutrition
  • Spices, beverages, and processed food

Nutrition must ensure health, productivity, and dignity, not mere survival.

Government employees are Drivers of Governance and Development. Fair Pay enhances Productivity, Morale and Talent Retention. Pay Revision is an investment in human capital and economic growth, not merely expenditure. Therefore, considering the average retail prices of the Food items, Clothing expenditure, 7.5% for Housing, 20% for Fuel, Electricity, Water Charges, 25% for Skill Development, 25% for Additional Expenditure towards marriage, recreation, festival etc., as per Supreme Court Judgment of 1991 and Technology Charges at the rate of 5%, the minimum pay computed by the Staff Side National Council (JCM) is Rs. 69,000/- for 5 Unit Family. Accordingly, the Fitment Formula for the existing employees and pensioners will be 3.833. The Minimum Wage and the Fitment Factor calculated by us is enclosed as Annexure-I of this Memorandum.

We propose the rate of annual increment should be increased from the existing 3% to 6%. We propose the following Merger of Pay Scales and the Revised Pay Scales of 8th CPC.

MERGER OF PAY SCALE

1) Level 2 & Level 3 should be merged in to one pay scale at level 3.

2) Level 4 & Level 5 should be merged in to one pay scale at level 5.

3) Level 7 & Level 8 should be merged in to one pay scale at level 8.

4) Level 9 & Level 10 should be merged in to one pay scale at level 10.

5) Existing employees in Level 5 should be upgraded and merged with Level 6 as a one time measure.

Standardized Pay Scales / Number of Pay Scales after Merger of Pay Scales

S.NO Proposed Level Existing Pay Matrix Proposed 8th CPC Pay Scale by applying 3.833 fitment factor
1 Pay Scale-1 (existing Level 1) Existing 18,000 – 56,900 Rs. 69,000
2 Pay Scale-2 (after Merger of existing Level 2 & 3) Existing 21,700 – 69,100 Rs. 83,200
3 Pay Scale-3 (after merger of existing Level 4 & 5) Existing 29,200 – 92,300 Rs. 1,12,000
4 Pay Scale-4 (existing Level 6) Existing 35,400 – 1,12,400 Rs. 1,35,700
5 Pay Scale- 5 (after merger of existing Level 7 & 8) Existing 47,600 – 1,51,100 Rs. 1,82,500
6 Pay Scale 6 (after merger of existing Level 9 & 10) Existing 56,100 – 1,77,500 Rs. 2,15,100
7 Existing Level 11 to Level 17 may be renumbered as Pay Scale 7, Pay Scale 8, Pay Scale 9, Pay Scale – 10, Pay Scale 11, Pay Scale -12, Pay Scale -13 Can be retained by using Fitment Factor 3.833

Annual Increment as already mentioned will be 6% of the Basic Pay in the proposed Pay Scale. The gap between Minimum and Maximum Pay should be balanced to avoid excess disparity. The ratio should not been more than 1:12. This will help in reducing income in equality, improving morale and reinforcing the Governments role as a model employer committed to fairness and Social Justice. Moreover the Pay Scales also should not have a wide gap between one pay scale and the other pay scale and a structural balance may be maintained.

Government Expenditure on Salaries

At present, the Central Government spends approximately 13% of its revenue expenditure on salaries, allowances, and pensions. With the implementation of the 8th Central Pay Commission (CPC), this expenditure is expected to rise during 2026-27. However, such expenditure should be viewed as an investment rather than a burden because:

  • Higher salaries increase purchasing power
  • Increased consumption boosts demand
  • Higher demand leads to greater tax collections

Thus, pay revisions contribute positively to economic growth and fiscal sustainability.

Need for a Sound Pay Structure

A fair and rational pay structure is essential to:

  • Attract talented individuals to government service
  • Retain skilled and experienced personnel
  • Ensure efficiency in governance

In view of rising cost of living and changing economic conditions, there is a strong need for periodic pay revision, ideally every five years, to maintain adequacy and relevance.

Principle of Fair Treatment

The 7th Central Pay Commission (Para 1.29) emphasized that government service is not merely contractual but carries a status with expectations of fairness and dignity. Further, the Hon’ble Supreme Court in Bhupendra Nath Hazarika vs State of Assam observed that:

  • Legitimate aspirations of employees should not be frustrated
  • The Government must act as a model employer
  • Fairness, transparency, and trust must guide employer-employee relations

Contribution of Central Government Employees

Central Government employees contribute significantly across sectors:

  • Revenue Departments: Enhance tax collection
  • Defence & Paramilitary Forces including Defence Civilian Employees: Protect national security
  • Railways: Ensure transportation
  • Scientific Community: Drive innovation
  • Administrative Services: Implement policies

Their role is fundamental to national development. The functioning of government departments cannot be judged on profit and loss principles, as the State has a social obligation to provide essential services such as defence, infrastructure, health, food security, postal services, and public utilities. Moreover, India is one of the lowest ratios of Government employees to population globally. Only about 1.6% of the population is employed in Government service.

India’s Economic Strength and Capacity

In the Union Budget 2025-26 the Central Government has allotted Rs. 2.85 Lakh Crore for salaries and Rs. 2.65 Lakh Crore for pensions, together making up nearly Rs. 5.5 Lakh Crore of Expenditure. Expenditure on pay and allowances and pension is approximately accounting for about 12 to 15% of the total union budget expenditure including pension for the Armed Forces, Pay & Allowances. Excluding Defence it is 7.1% on salary + 4% on pension.

India is currently ranked 4th in global GDP (2025), with an economy valued at approximately $4.3 trillion and growing at around 6.5%. According to IMF projections:

  • India is expected to become the 3rd largest economy by 2027
  • GDP likely to cross $5 trillion
  • Growth projected at 6.2% (2025) and 6.3% (2026)

Comparatively:

  • China: ~4.0%
  • USA: ~1.8%
  • Global average: ~2.8%

This demonstrates that India’s economic position is strong and expanding, providing adequate fiscal space to ensure fair compensation for government employees.

At this juncture, it is considered appropriate to briefly advert to the growth trends of two additional macroeconomic parameters over the same period. The first pertains to India’s GDP at current prices. As reported in the Economic Survey 2025-26, GDP at current prices has increased from Rs. 1,24,67,959 crore in FY 2014-15 to Rs. 3,30,68,145 crore, reflecting a growth of 165.23%.

The second parameter relates to the revenue collection of the Government. As per figures reported in the respective Union Finance Bills of India, the combined direct and indirect tax revenue has risen from Rs. 12,41,681 Crore in FY 2014-15 to Rs. 37,92,250 crore, registering a growth of 205.41%. Both these parameters assume considerable significance, as they represent the aggregate outcome of policy implementation in which Government employees play a pivotal role. More importantly, the substantial and sustained growth, particularly in revenue collection, clearly evidences the enhanced fiscal capacity of the Government. This, in turn, establishes that the Government is well-positioned to comfortably absorb the financial implications arising from a meaningful revision of minimum wages and the broader expenditure associated with the implementation of revised pay structures pursuant to the recommendations of the 8th Central Pay Commission.

Revision of Pay structure to following shall also be recommended with effect from 1/1/2026:

  • Extension of revised pay structures to Central Government Pensioners who are retired before 1/1/2026
  • Extension of revised pay structures to autonomous bodies approved by Parliament and other Autonomous Institutions of Government of India and Union Territories (effective 1 January 2026)
  • Revision of Gramin Dak Sevaks (GDS) pay scales to strengthen rural services.
  • BSNL & DoT Pensioners

Conclusion

The fixation of salaries and allowances for Central Government employees should not be guided solely by revenue expenditure considerations. It must take into account:

  • Their critical role in nation-building
  • The need to attract and retain talent
  • The broader economic benefits of higher wages

A fair, transparent, and dynamic pay structure, supported by a permanent pay review mechanism, is essential to ensure motivated, efficient, and accountable public service.

We also propose that all Central Government employees may be exempted from Professional Tax being recovered by the State Governments from the salary of the employees. Already the employees are subjected to payment of Income Tax and GST etc. Over and above this the Central Government employees are burdened with the recovery of Perfossnal Tax. 8th CPC may kindly recommend for exemption of Professional Tax from the Wages of the employees.


Annexure-I

MINMUM WAGE:

The following table suggest the increase in wages as per NNI:

Pay Commission Net Average National Income Average Growth of Per Capita Income Average Growth % Minimum Wage as per CPC
IV CPC-01-01-1986 Rs 258 149.8 Rs 750
V CPC-01-01-1996 Rs 837 224.4 324.6 Rs 2550
VI CPC-01-01-2006 Rs 2166 158.6 258.6 Rs 7000
VII CPC-01-01-2016 Rs 7221 233.4 334.4% Rs 19900
for 3 unitsRs 33,169
For 5 units
VIII CPC-01-01-2026 Rs 16,680 (as on 1/1/25) 131.0*

as on 1/1/25 136% estimated as on 1/1/2026

Rs 80,444 (for 5 units as on 1/1/26)

Table 1: 

Minimum Wage as on Jan 2026 for average of 2025 prices As per retail prices – Retail prices All India – 5 units

Sl. No Item Per Month (5 units) Average Rate Amount (Rs)
1 Rice/Wheat Super fine 71.25 60.00 4275.000
2 Dal (Toor/Urid/Moong) 12.00 139.00 1668.000
3 Raw Vegetables 15.00 62.00 930.000
4 Green Vegetables 18.75 37.00 693.750
5 Other Vegetables 11.25 60.00 675.000
6 Fruits 18.00 120.00 2160.000
7 Milk 30.00 63.00 1890.000
8 Sugar/Jaggery 8.40 55.00 462.000
9 Edible Oil 6.00 180.00 1080.000
10 Fish 4.16 688.00 2862.080
11 Meat 8.33 804.00 6697.320
12 Egg 150.00 7.00 1050.000
13 Total Food 24443.150
14 Other food (10% of food charges) 2444.315
15 Detergents Lumpsum 655.00 655.000
16 Clothes 9.2 222.00 2035.000
17 Stitching charges Lumpsum 3000.000
18 Total (13 to 17) 32577.465
19 Housing @ 7.5% of 18 2443.310
20 Fuel, Electricity, Water @ 20% 7004.155
21 Skill Add-on (25% of 18 to 20) 10506.232
22 Social/Misc (25% of 18 to 21) 13132.791
23 Technology charges @ 5% 0 3283.198
24 Grand Total 68947.151
25 Min Pay (Group C) Rounded 69000.000
26 Fitment Formula 3.833

Table:2 Other Food items

Rates as per Hyderabad society

Spices List (Monthly)

Sl. No Item Quantity Amount (Rs)
1 Cloves 50 gms 51
2 Cardamom 25 gms 94
3 Cumin 250 gms 107
4 Turmeric 500 gms 142
5 Coriander 250 gms 48
6 Garam Masala 50 gms 49
7 Black pepper 50 gms 48
8 Cinnamon 50 gms 23
9 Fennel 100 gms 40
10 Bay leaves 50 gms 12
11 Red chilly 250 gms 50
12 Asafetida 50 gms 85
13 Fenugreek 100 gms 19
14 Saffron 5 gms 150
15 Jeera 100 gms 90
16 Mustard 100 gms 50
Total Spices 1058

Other Important

No Item Quantity Amount (Rs)
1 Coffee/Tea powder 2 kg 1800
2 Salt 2 kg 50
3 Tamarind 1 kg 250
4 Other beverages LS 200
5 Processed food LS 500
Total Other Food 2800

Total: Rs 1058+2800 = Rs. 3858


Table 3 

Non Food items – Monthly needs

Sl. No Item Quantity Amount (Rs)
1 Hair oil 1/2 lt 100
2 Bathroom cleaner 1 lt 115
3 Foot wear LS 500
4 Tooth brush 4 70
5 Tooth paste 1 80
6 Hair cutting 4 400
7 Bucket 2 500
8 Internet & Mobile pack 4 1000
9 News paper 150
10 Electric bulb 100
11 Shaving razor 80
Total 3095

Table 4

Non Food items yearly needs -digital expenses

Sl. No Item Qty Amount (Rs) Lifecycle
1 Mobile handset 4 20000 3 years
2 Television 1 15000 5 years
3 Fan 4 6000 6 years
4 Iron Box 1 1500 7 years
5 Laptop/Computer 1 50000 5 years
7 Refrigerator LS 8000 5 years
8 Watch LS 5000 3 years
9 Washing machine LS 5000 5 years
10 Mixi/Grinder 5000 5 years
Total Yearly 115500
Every Month expenses in Rs 1925

Non Digital

Slno Item Qty Amount
1 Vessel LS 10000 3 years life
2 Stove 1 1500
Basic Furniture LS 30000
Total 41500
Every Month expenses in Rs 1383.33

Total Expenses per
month = Rs.6403/-

Prices of various grocery items, vegetables, fruits, fish, meat etc as on 2025 & 15th Feb 2026 – City wise

Prices of essential commodities collected from
various cites across the county – 2025

Slno Item Unit Bengaluru Chennai Hyderabad Mumbai Delhi Kolkata Karnal Haryana Patna Jamm BBSR Average
l Rice Super fine kg 74 76 64 107 62 80 60 65 74
2 Wheat kg 52 64 49 30 49 35 38 40 54 46
Average 60
3 Dal – Toor kg 207 144 122 171 145 140 150 150 138 152
4 Dal Urid Kg 160 148 116 118 134 120 135 120 134 134
5 Dal-Moong Kg 134 152 116 130 172 130 120 120 134 134
Average 139
6 Onion Kg 45 45 60 56 50 70 55 66 68 70 59
7 Potato Kg 49 40 40 40 30 45 41 41 45 42 41
8 Tomato Kg 26 25 31 31 30 31 30 28 24 25 28
9 Beans ka 75 76 75 70 86 48 71 65 75 76 69
10 Radish kg 55 46 45 40 40 45 41 30 42 43
11 Brinjal kg 49 51 50 60 30 44 55 55 51 52 50
12 Carrot kg 77 75 75 70 70 65 65 64 39 67
13 Mushroom ka 140 130 120 140 171 112 120 148 115 149 135
14 Green peas ka 81 70 92 91 92 90 85 92 94 95 88
Average 64
14 Spinach/Palak kg 50 21 18 28 60 50 40 40 32 28 37
15 Apple kg 225 298 231 200 200 180 220 299 232
16 Orange kg 102 115 88 90 20 80 100 70 129 88
17 Banana kg 94 114 78 80 84 60 60 75 81
18 Average 133
19 Milk kg 58 55 60 55 66 70 70 65 74 58 63
20 Sugar kg 43.81 50 57 48 48 47 47 49
Jaggery kg 66 82 65 50 45 50 67.5 61
21 Average 55
22 Refined oil Lt 160 141 160 166 190 190 175 179 170
Ground nut Oil Lt 202 162 238 170 200 175 185 190
23 Average 180
24 Fish- Pormfret kg 720 680 665 635 850 700 680 650 660 635 688
Meat kg 750 800 775 735 1000 860 790 760 770 800 804
25 Egg unit 5.04 7 8 7 7 7 7 7
26 Detergents kg 420 420
27 Clothes – Cotton Mt 159 159

Prices of essential commodities collected from
various cites across the county – Jan 2026

Slno Item Unit Bengaluru Chennai Hyderabad Mumbai Delhi Kolkata Kerala Patna Jammu BBSR Average
1 Rice Super fine kg 84 90 60 62 74
2 Wheat kg 57 50 48 54
Average 64
3 Dal –
Toor
kg 140 150 170 180 160
4 Dal Urid kg 142 130 170 150 148
5 Dal-
Moong
kg 142 160 136 137
Average 148
6 Onion kg 50 45 53 50 51 50 50 45 55 50 I 50
7 Potato kg 45 44 43 44 41 42 45 43 41 45 43
8 Tomato kg 45 40 45 44 75 40 38 35 40 45 45
9 Beans kg 68 73 70 72 71 70 70 70 71 71
10 Radish kg 43 45 44 50 52 40 50 41 45 50 46
11 Brinjal kg 53 65 62 50 54 55 65 65 50 65 58
12 Carrot kg 60 55 56 61 61 60 55 65 62 60 60
13 Mushro
om
kg 120 115 128 120 125 115 50 11
8
115 110 112
14 Green peas kg 72 73 65 75 63 72 73 75 73 75 72
Average 62
14 Spinach/  Palak kg 18 20 21 22 23 22 20 20 17 24 21
15 Apple kg 170 180 220 150 200 190 185
16 Sapota kg 60 49 90 80 80 66 71
17 Banana kg 60 80 80 65 65 70
18 Grapes kg 130 130 80 82 120 108
19 Mango kg 120 110 70 113 120 107
Average 109
20 Milk kg 58 90 58 69
21 Sugar kg 51.00 45 47 48
22 Jaggcry kg 66 80 67.5 71
Average 59
23 Refined oil Lt 202 220 178 179 195
24 Ground nut Oil lt 180 250 215
Average 205
25 Fish- Pomfret kg 880 1200 900 635 904
26 Meat kg 850 800 800 800 813
27 Egg Unit 6.50 7 7 7
28 Detergents kg 420 420
29 Clothes

Cotton
Mt 159 159

Table 4.2: Average calorie, protein and fats requirements of households with casual and regular wage earnings as their main source of livelihood.

Age-Sex-Occupation* Composition Population (%) Nutrient requirements per day per person
Calorie (K/cal) Protein Grams Fat Grams Weighted nutrient requirements**
Calorie Protein Fat
Less than 1 1.51 585 10.2 19 8.8 0.2 0.3
1-3 5.76 1060 16.7 27 61.1 1 1.6
4-6 5.94 1350 20.1 25 80.2 1.2 1.5
7-9 6.5 1690 29.5 30 109.9 1.9 2
10-12 6 2100 40 35 126 2.4 2.1
13-14 Male 2.37 2750 54.3 45 65.2 1.3 1.1
13-14 Female 2.1 2330 51.9 40 48.9 1.1 0.8
15-59 Male Sedentary 0.18 2320 60 25 4.2 0.11 0.05
Moderate 8.5 2730 60 30 232.1 5.1 2.6
Heavy 21.95 3490 60 40 766.1 13.2 8.8
Non-worker 4.73 2320 60 25 109.7 2.8 1.2
15-59 Female Sedentary 0.11 1900 55 20 2.1 0.1 0.02
Moderate 2.1 2230 55 25 46.8 1.2 0.5
Heavy 8.93 2850 55 30 254.5 4.9 2.7
Non-worker 17.08 1900 55 20 324.5 9.4 3.4
60 & above Male 3.05 2320 60 25 70.8 1.8 0.8
60 & above Female 3.2 1900 55 20 60.8 1.8 0.6
All 100 2371.6 49.3 29.9

Source: Col. 2 based on EUS 2011-12, Cols. 3, 4 and 5 based on ICMR 2010, and Cols. 6, 7 and 8 based on the Committee’s estimate.

Note: * The types of work have been classified into sedentary, moderate and heavy, using the National Classification of Occupations (NCO) 2004 codes at the 3-digit level. The Committee has categorized sedentary workers as those engaged in occupations with codes between 111 and 246; moderate between 311 and 644; and heavy between 811 and 933. ** The weighted average has been estimated by multiplying each nutrient requirement per person per day by the population share in each category.

4.16 Furthermore, a 10 per cent margin in the calorie consumption may be allowed instead of fixing the same as a single point unit. Literature reflects that a lower or higher intake of calorie consumption in the margin of 10 per cent on a daily basis is not likely to affect a person’s working capacity (Sukhatme, 1981; GoI., 2014). This allows a variation in the calorie requirements in the range of 2,160-2640 K/cal. per day per adult person. Allowing a 10 per cent margin in calorie intake also helped capture a larger number of households in the CES 2011-12 sample for the purpose of estimating a ‘balanced diet’ consumption basket, compared to fixing the calorie norm at 2,400 K/cal as a single point.

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COMMENTS

WORDPRESS: 1
  • G. DHARMA REDDY 5 days ago

    Excellent proposal and justified. The honorable Chair person and the members of the 8 CPC wii definitely do the needful justification.

    JAI HIND

    JAI BHARAT.