In its recommendations, the body has proposed a minimum basic pay of ₹69,000, based on a fitment factor of 3.833, significantly higher than the current structure under the 7th Pay Commission.
Key pay and increment proposals
The memorandum calls for doubling the annual increment rate to 6%, from the existing 3%, arguing that a higher increment would better reflect inflation and rising living costs. It also suggests rationalising pay levels by merging certain lower and mid-level pay bands and retaining higher levels with adjustments based on the proposed fitment factor.
Revised HRA structure
The NC-JCM has proposed an upward revision in House Rent Allowance (HRA) across city categories:
- X category cities: 40% of basic pay
- Y category cities: 35%
- Z category cities: 30%
It has also recommended indexing HRA to Dearness Allowance (DA) to ensure automatic adjustments with inflation, along with periodic reviews of city classifications every five years.
Allowances and additional benefits
The memorandum includes provisions for:
- 10% additional allowance for employees acquiring qualifications beyond prescribed requirements
- Overtime compensation for extra duty, including double rates where applicable under labour laws
- Enhanced consideration for employees working in high-risk and hardship roles, such as defence production, healthcare and laboratories
Pay structure and parity
The staff side has proposed restructuring pay scales to reduce disparities, suggesting that the ratio between minimum and maximum pay should remain capped at 1:12. It argues that a more balanced structure would improve equity, morale and the government’s role as a model employer.
The recommendations will now be examined as part of the broader consultations ahead of the formal constitution and deliberations of the 8th Pay Commission.
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First Published: Apr 15, 2026 7:50 AM IST
