Mumbai , India — May 6, 2026
A significant development has emerged regarding the upcoming 8th Pay Commission, as a delegation from the Maharashtra Old Pension Organization met the commission’s chairperson Ranjana Prakash Desai and other members to present a comprehensive set of demands concerning salaries, pensions, and service conditions of central government employees.
The meeting, held in Pune on May 5, focused on proposals that could significantly impact millions of employees and pensioners across India.
Key Demand: ₹65,000 Minimum Basic Salary
Among the most notable proposals is a sharp increase in the minimum basic salary from ₹18,000 to ₹65,000. The organization stated that this demand is based on realistic cost-of-living calculations and aligns with the Aykroyd formula, which considers family consumption needs.
Proposal to Raise Fitment Factor to 3.8
The delegation also recommended increasing the fitment factor from the current 2.57 (under the 7th Pay Commission) to 3.8, arguing that such a revision is necessary to ensure meaningful salary adjustments while maintaining fiscal balance.
Broader Structural Reforms Suggested
The memorandum submitted to the commission includes a 10-point charter of demands, covering various aspects of employee welfare:
- Revised Family Definition: Proposal to increase family size for wage calculation from 3 to 5 members, including parents
- Dearness Allowance (DA): Minimum 4% increase per revision, with automatic merger into basic pay once it reaches 50%
- House Rent Allowance (HRA): Suggested restructuring to 12%, 24%, and 36% for X, Y, and Z category cities, respectively
- Transport Allowance (TA): Proposed 2.5 times increase in line with rising travel costs
- Hard Area Allowance: Higher compensation for employees working in tribal, PESA, and Naxal-affected regions
Salary Growth and Career Progression
The organization has also sought an increase in annual salary increments from 3% to 5%, along with rounding off revised salaries to the nearest ₹1,000.
For educators, a revised career progression model (10-20-30) has been proposed in place of the current 12-24-26 structure.
Pension Reforms in Focus
Pension-related reforms formed a critical part of the discussions:
- Demand to restore the Old Pension Scheme (OPS) for approximately 8.5 million employees currently under the National Pension System (NPS)
- Proposal for minimum 10% guaranteed return under NPS
- Suggestion to increase employer contribution to 18.5%
- Lowering the eligibility age for additional pension benefits from 80 to 75 years, with a 20% increase at that stage
What It Means
The proposals submitted to the 8th Pay Commission reflect growing concerns over inflation, rising healthcare costs, and changing family structures. If accepted, these recommendations could have far-reaching implications for government expenditure as well as the financial well-being of employees and retirees.
The commission is expected to review these demands as part of its broader consultation process before finalizing recommendations.
