8th Pay Commission – From HRA hike to 65% salary hike, AINPSEF puts forth these big demands

The expectations of the central government employees and pensioners regarding the 8th Pay Commission are increasing continuously. Meanwhile, the All India NPS Employees Federation (AINPSEF) has put forward several big suggestions before the Pay Commission. The demands include hike in HRA (House Rent Allowance), hike in transport allowance, increase in fitment factor and hike in salary of employees by up to 65%. However, it is important to understand that at the moment all these employees are the demands and suggestions of the organization. They have not yet been approved by the government or the 8th Pay Commission. Let us know in detail what stage the commission is at and how long the employees may have to wait.

AINPSEF seeks hike in HRA
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AINPSEF seeks hike in HRA

The federation has suggested that HRA be increased to 36% in X category cities, 24% in Y category and 12% in Z category. Under the 7th Pay Commission, these rates are currently 30%, 20% and 10% respectively.

Also, every time the Dearness Allowance (DA) is increased, the HRA should also be increased automatically, so that the employees can get relief from the rising inflation. If the fitment factor increases in the 8th Pay Commission, then the amount of HRA will also automatically increase, as it is a percentage of the basic salary.

Demand for change in fitment factor and family unit
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Demand for change in fitment factor and family unit

The federation has also demanded a change in the family unit used to fix the salary. At present, the family is counted on the basis of 3 members, but it has been proposed to increase it to 4.4 members, which will also include dependent parents.

This can increase the fitment factor from 2.05 to 2.10, which will directly benefit the basic salary of the employees. The fitment factor is a multiplier that converts the old basic salary to the new basic salary. In the 7th Pay Commission, it was 2.57, while experts believe it could be between 1.90 and 2.86 in the 8th Commission.

Proposal on Transport Allowance and Other Allowances
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Proposal on Transport Allowance and Other Allowances

The federation has also demanded a minimum transport allowance of Rs 9,000 per month for Level-1 employees. He says that this is necessary in view of the rising inflation and travel expenses in the current times.

The workers have also been demanding a 65% hike in their salaries. The Federation argues that this increase is necessary in view of the increase in inflation and cost of living in the last 10 years.

What could be the impact? 65% of the math
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What could be the impact? 65% of the math

If all the demands of the federation are accepted, then the salary of level-1 central employees can increase from about Rs 37,080 to about Rs 61,344 per month, i.e. a salary increase of about 65% is possible. Anyway, that's just a suggestion.

It is to be noted that in the 7th Pay Commission, the NC-JCM (Staff Side) had demanded a fitment factor of 3.71, but the Commission had recommended 2.57, which the government approved.

At what stage is the 8th Pay Commission?
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At what stage is the 8th Pay Commission?

At present, the 8th Pay Commission is taking suggestions from employee organisations, unions and other stakeholders across the country.

The commission was constituted on November 3, 2025, with former Supreme Court judge Justice Ranjana Prakash Desai as its chairperson.

The committee has been given 18 months "time to submit its report. Recently, the Commission has held meetings with stakeholders in Bhubaneswar (July 6-7) and Kolkata (July 9-10). The deadline for data collection has been extended to July 31, 2026.

How long will you get the benefit? Possible timeline
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How long will you get the benefit? Possible timeline

As per the current timeline, the final recommendations of the 8th Pay Commission are expected by May 2027.

If we look at the experience of the previous Pay Commissions, the 7th Pay Commission took 2.5 years from formation to implementation, the 6th took 2 years and the 5th took 3.5 years.

According to this, if the salary hike is announced in 2027, then its full benefit can be given to the employees by 2029 or 2030. However, the salary hike will be effective from January 1, 2026 and the employees will also get arrears.

What will be the final decision?
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What will be the final decision?

Experts believe that the final fitment factor will be decided by striking a balance between the expectations of the employees and the financial position of the government.

The recommendations of the 7th Pay Commission had put an additional burden of Rs 1.02 lakh crore on the Centre. This time, the burden is likely to be Rs 1.4 lakh crore annually In addition, about 50 lakh central government employees and 65 lakh pensioners will be affected.

The final decision will be taken only after the recommendations of the commission and the approval of the central government.

Conclusion
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Conclusion

The 8th Pay Commission is an important development for central employees and pensioners. Employee organizations like AINPSEF have put forth big demands like HRA hike, revision in fitment factor and 65% hike in salary,

but it is important to understand that these are just proposals right now. The Commission is likely to submit its report by May 2027 and its implementation may take up to 2029-30.

Employees are advised to keep a check on the updates on the Commission's official website 8cpc.gov.in and not to pay heed to any unauthorized sources. The wait is still on, but the expectations are high. Stay tuned to timesbull.com for accurate and up-to-date information.