The All India NPS Employees Federation (AINPSEF) has urged the 8th Central Pay Commission (CPC) to revise the salary structure for Central government employees by increasing the fitment factor, raising House Rent Allowance (HRA) rates and fixing a minimum transport allowance of Rs 9,000 a month for Level 1 employees.
The federation said its proposals would increase the salary of Level 1 employees by about 65%, taking monthly pay from Rs 37,080 to around Rs 61,344. It has also sought changes to the formula used to calculate salaries by revising the assumed family size from three to 4.4 members through the inclusion of dependent parents.
The recommendations form part of the federation's submission to the 8th Pay Commission, which is consulting employee organisations, unions and other stakeholders before preparing its final report. The proposals reflect the demands placed before the Commission and have not been accepted by the government.
Federation Seeks Higher HRA, Transport Allowance
The AINPSEF has proposed a revised HRA structure of 36% for X-class cities, 24% for Y-class cities and 12% for Z-class cities. It has also requested that HRA be increased whenever the government approves a rise in Dearness Allowance.
The federation has further recommended that the minimum transport allowance for Level 1 employees be fixed at Rs 9,000 per month.
It has also sought an increase in the fitment factor to 2.10 from 2.05. According to the federation, revising the assumed family unit to 4.4 members by including dependent parents would support this change and result in a higher basic pay for Central government employees.
ALSO READ: 8th Pay Commission: DA, DR Or Fitment Factor? The Real Drivers Of Salary Hikes Explained
Pay Commission Continues Consultations
The 8th Pay Commission has completed eight months since it began functioning and is continuing consultations with employee associations, staff unions and other stakeholders across states. The Commission will consider these submissions while preparing its recommendations for the government.
Former Supreme Court Justice Ranjana Prakash Desai is chairing the Commission. Former IAS officer Pankaj Jain is the Member-Secretary, while Professor Pulak Ghosh, a finance professor and member of the Prime Minister's Economic Advisory Council, is serving as a member. The government notified the Commission's Terms of Reference late last year.
If the Commission follows its usual timeline, it is expected to submit its report within 18 months of its formation. That would place the earliest possible submission between February and May 2027.
Previous Pay Commissions have generally seen a gap of two to three years between the submission of recommendations and their full implementation. If that pattern continues, any revisions recommended in 2027 may come into effect only by 2029 or 2030.
ALSO READ: 8th Pay Commission: Minimum Basic Pay To Rise From Rs 18,000 To Rs 69,000? Here's The Math
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.