Pensioners' body seeks Rs 69,000 minimum basic pay, Rs 34,470 pension from 8th Pay Commission

Expectations among central government employees and pensioners have risen over the Eighth Pay Commission. The commission recently met in Bengaluru, where employee and pensioner organisations put forward different demands on pay rise, pension, fitment factor and allowances.

The Karnataka Posts and Telecommunications Pensioners Association has proposed that the minimum basic pay of central government employees be raised to Rs 69,000 and the minimum pension to Rs 34,470. It has also sought an increase in the annual increment from 3 per cent to 6 per cent. These are only proposals, and the Centre has not given final approval.

Under the Seventh Pay Commission, the minimum basic pay of central government employees is currently Rs 18,000. The association has sought an increase citing rising inflation, household expenses and changing economic needs. It has proposed a fitment factor of 3.833. If accepted, the minimum basic pay of Rs 18,000 could rise to about Rs 69,000. However, Rs 69,000 is not a fixed pay; it is the figure the association has suggested. The final increase will depend on the commission's recommendations and the Centre's decision.

The association has made a major demand for pensioners too. Under the Seventh Pay Commission, the minimum basic pension is currently Rs 9,000. The proposal is to raise it to about Rs 34,470 in the Eighth Pay Commission, again using the 3.833 fitment factor. If the demand is accepted, pensioners drawing the minimum pension could benefit financially. No final decision has been taken on this either.

On the annual increment, the association says central government employees currently get a 3 per cent rise on basic pay every year, which it describes as low. Citing employees' work, experience, new skills and growing responsibilities, it has proposed raising this to 6 per cent. If accepted, employees' basic pay could rise by more each year than at present.

A change in the pay structure has also been sought. The Seventh Pay Commission has 18 pay levels in all. The association has proposed merging them into just 7 pay levels. It claims this would make the pay structure simpler and more uniform. It has also suggested fixing a standard pay scale for each pay level.

The association has also sought a change in the Aykroyd formula used to fix the minimum wage. It says household spending, education, health, transport and daily needs have risen, and that mobile phones, the internet and digital devices have become essentials. It wants these modern expenses counted when the minimum wage is worked out.

While arriving at the need-based minimum wage, the Seventh Pay Commission took a family of three units as the basis. The association now wants this raised to five units. It has suggested that this include the needs of the employee, spouse, children and dependent parents. The association holds that the minimum wage should be set according to the number of family members and the expenses on them.

The chairperson of the Eighth Central Pay Commission is Justice Ranjana Prakash Desai. Discussions are under way with various employee and pensioner organisations under her leadership. After the Bengaluru meeting, the commission's next meetings will be held in Mumbai on October 22 and 23, 2026, where suggestions and demands from the organisations will be studied. The commission will then submit its recommendations to the Centre, which will take the final decision. Central government employees should therefore not assume that a minimum pay of Rs 69,000, a pension of Rs 34,470 or a 6 per cent annual increment has been fixed. For now, these are only the organisations' demands.