- AINPSEF proposes significant HRA, salary, and allowance revisions.
- Proposals detail higher HRA, fitment factor, and transport.
- These proposals could significantly raise Level 1 employee salaries.
The 8th Central Pay Commission (CPC) is continuing consultations with employee organisations and stakeholders as it prepares its recommendations, with one of the latest submissions coming from the All India NPS Employees Federation (AINPSEF).
In a memorandum submitted to the commission, the federation has proposed a series of changes covering house rent allowance (HRA), transport allowance, salary calculations and the fitment factor, according to reports by News24. If accepted, the proposals could lead to higher salaries for central government employees across various pay levels.
The commission, chaired by former Supreme Court Justice Ranjana Prakash Desai, is currently in the consultation phase and has been holding meetings with employee representatives, unions and stakeholders across states before finalising its recommendations.
HRA Revision Among Key Proposals
One of the major recommendations made by AINPSEF relates to house rent allowance.
According to the report, the federation has proposed increasing HRA to 36 per cent for X-category cities, 24 per cent for Y-category cities and 12 per cent for Z-category cities.
It has also suggested that HRA should be revised automatically whenever Dearness Allowance (DA) is increased, ensuring housing benefits keep pace with inflation.
Federation Seeks Changes to Family Unit Formula
AINPSEF has also recommended revising the family unit calculation used for determining salaries, reported Livemint.
The federation has proposed increasing the family unit size from three members to 4.4 members by including dependent parents. It believes this would justify raising the fitment factor from 2.05 to 2.10.
A higher fitment factor would translate into an increase in the basic pay of central government employees across different levels.
Also Read : Gold Silver Rate Today (July 8): Oil Rises, Metal Falls, Check Latest Rates In Delhi, Mumbai, Chennai, More
Demand for Higher Transport Allowance
The federation has also sought an upward revision in transport allowance.
According to the report, AINPSEF has recommended a minimum monthly transport allowance of Rs 9,000 for Level 1 employees under the new pay structure.
Salary Increase Proposal
Based on the federation’s overall recommendations, salaries for Level 1 employees could see a substantial increase if the proposals are accepted.
The report said monthly salaries could rise from Rs 37,080 to around Rs 61,344, representing an increase of nearly 65 per cent.
However, these figures are based on the federation’s proposals and are not official recommendations of the 8th Pay Commission.
Consultation Process Continues
The 8th CPC is currently gathering feedback from employee associations, unions and other stakeholders before preparing its final report.
The commission closed the window for public suggestions on June 15, while submissions of data concluded on June 30.
Over the past few months, it has conducted meetings and state visits across April, May and June, with additional consultations scheduled during July. More meetings are expected across states and Union Territories in the coming months.
These discussions are expected to play an important role in shaping the commission’s recommendations, as they bring together views from organisations representing central government employees, pensioners, defence personnel and railway staff.
When Can Employees Expect a Decision?
Constituted every ten years, the Pay Commission has been tasked with reviewing the salaries, allowances and pensions of central government employees.
The panel is expected to submit its recommendations within 18 months, indicating that the earliest official recommendations could be released between February and May 2027.
According to India Today, Dr Manjeet Singh Patel, National President of the All India NPS Employees Federation and National Mission for Old Pension Scheme Bharat, has said that an announcement could come in April 2027, coinciding with the beginning of the new financial year.
Even after the recommendations are submitted, implementation is expected to take time. Based on previous pay commissions, the rollout could take another two to three years, meaning any approved revisions announced in 2027 may only be fully implemented by 2029 or 2030.
Around 50 lakh central government employees and nearly 65 lakh pensioners, including defence personnel and retirees, are expected to be covered under the 8th Pay Commission once its recommendations are implemented.
Also Read : Hormuz Attacks, Iran Sanctions: What The Latest US Move Means For India’s Oil
