The Staff Side of NC-JCM has submitted comprehensive proposals to the 8th Central Pay Commission (CPC) regarding dearness allowance calculation methodology. According to reports from Personal Finance News, the Staff Side emphasized that DA must remain fully indexed to inflation while addressing current methodological limitations. The proposal specifically targets the Consumer Price Index (AICPI) calculation, which currently uses data from 463 items that may not accurately reflect central government employee consumption patterns.
A significant proposal involves changing the calculation period for DA determination. As reported by Personal Finance News, the Staff Side argues that the present calculation of Average 12 months should be replaced by 6 months average as DA is paid once in six months. This modification addresses the current practice where the average AICPI-IW data of the past 12 months is used for DA calculation, which may not align with the actual payment frequency.
The Staff Side has proposed creating a separate consumption basket representing government employees with appropriate weights for essential expenditure heads. According to reports from Personal Finance News, this basket should include food, housing, education, healthcare, and transportation categories that differ from industrial worker consumption patterns. The proposal also suggests collecting price data from open retail markets and cooperative outlets to ensure the index reflects actual consumer prices rather than administratively determined rates that can vary up to 25%.
The Staff Side has proposed implementing point-to-point DA calculation instead of the current practice where DA is rounded off to the lowest value. As reported by Personal Finance News, this would ensure that if employees are eligible for 55.95% DA, the sanctioned amount would be 55% DA. Additionally, the proposal suggests merging DA with basic pay once it hits 25% with Basic Pay and Basic Pension. The Staff Side noted that these proposals have not yet been accepted by the 8th CPC, which may or may not include these changes in its final report.
The 8th Pay Commission is currently consulting stakeholders on salary, pension and allowance revisions before finalizing its report. According to recent reports, the Commission may be implemented by late 2027, with arrears likely from January 1, 2026. The Staff Side has demanded a fitment factor of 3.83 and minimum basic pay of ₹69,000, while the All India Defence Employees' Federation (AIDEF) has also demanded a fitment factor of 3.83. The Indian Railways Technical Supervisors Association (IRTSA) has proposed five fitment factors ranging from 2.92 to 4.38 for different employee levels, though these are all suggestions based on different employee assumptions.
