
The 8th central pay commission is conducting its second day of consultations with unions from the Ministries of Defence and Railways today, as reported by Mint. Set up by Prime Minister Narendra Modi in November last year, the commission began its processes in January and opened memorandum submissions in March. The panel has scheduled meetings with employee representatives in Delhi, Jammu and Kashmir, Ladakh and Telangana in May and April, with separate meetings planned for other states and Union Territories in due course.
Three major employee representatives have submitted detailed proposals to the 8th CPC seeking substantial overhaul of salaries, pensions and allowances. According to Mint, the National Council - Joint Consultative Machinery (NC-JCM) demands a ₹69,000 minimum basic pay, while the Maharashtra Old Pension Organisation proposes ₹65,000 minimum basic pay. The All India Defence Employees Federation (AIDEF) also seeks ₹69,000 minimum basic pay. For annual increments, NC-JCM proposes 6% increases from the current 3%, while Maharashtra Old Pension Organisation suggests 5% increases. AIDEF demands improved progression-linked increments.
The 8th Pay Commission has introduced a proposed 5-Unit Family Formula that represents a significant shift in salary calculation methodology. As reported by The Workers' Rights, this system is designed to calculate salaries based on real household needs, including food, housing, clothing, and family expenses. This formula represents a departure from traditional salary structures and could mark a salary revolution for millions of employees who have been waiting for comprehensive salary reform. The commission is chaired by former Supreme Court Judge Justice Ranjana Prakash Desai.
Regarding allowances, as reported by Mint, NC-JCM seeks housing and utility-linked structured pay, Maharashtra Old Pension Organisation demands higher house rent allowance (HRA) and 2.5x TA increase, while AIDEF proposes risk allowance of ₹15,000 per month. For dearness allowance and inflation handling, NC-JCM advocates for inflation-linked wage model, Maharashtra Old Pension Organisation seeks minimum 4% DA hike plus DA merger at 50%, and AIDEF demands inflation-adjusted compensation. The commission is chaired by former Supreme Court Judge Justice Ranjana Prakash Desai.
The All India Defence Employees Federation (AIDEF) has submitted a comprehensive circular dated May 13, 2026, demanding equal treatment for defence civilian employees. As reported by ET Wealth Online, AIDEF argues that defence civilian employees work alongside Armed Forces personnel in defence establishments, including border areas and high altitudes, yet receive fewer benefits. The federation demands equal pay scales, promotions and benefits as Railway employees, along with the same risk and hardship allowances that uniformed personnel enjoy. AIDEF specifically seeks ₹15,000 monthly risk allowance, increased ₹2 crore ex-gratia payment for families of employees killed in accidents, and martyr status for defence civilian employees who die while performing duty. The federation also proposes Modified Assured Career Progression Scheme (MACP) for all Group C and Group B employees, addressing current stagnation in career progression.