8th CPC Suggestions & Recommendations: atleast 3 promotions, pension revision every 5 years, pay scales merger and much more

Recently, central government has initiated consultation for recollection and suggestions for 8th pay commission.
Every 10 years, the Central Pay Commission reviews salaries, pensions, and allowances for millions of government employees and pensioners. The upcoming 8th CPC will be no different, and the Staff Side of the National Council-JCM has already shared its wish-list with the Finance Ministry. Here’s a simple breakdown of the main recommendations and what they could mean for you starting January 2026.

Why the 8th CPC is Important

The pay commission impacts around 4.8 million employees and 6.7 million pensioners. It’s about more than just salary increases — it sets the tone for pensions, medical benefits, risk allowances, and rules on promotions and Dearness Allowance (DA) to protect your earnings from inflation.

What’s on the Table? Key Recommendations

Following are the 15 major recommendations the Staff Side of the NC-JCM shared with the government. The ToR proposal by the NC-JCM gave details of which categories of employees would be covered for benefits under the 8th Pay Commission.

1. Covering All Employees: From defence to postal staff and audit employees – no group should miss out on pay revisions.
2. Reset Pay from 1 Jan 2026: A new pay matrix with a “fitment factor” will revise your basic pay and reset DA to zero before it climbs again.
3. Minimum Salary Should Be a Living Wage: The minimum pay could rise significantly, possibly from ₹18,000 to somewhere between ₹32,000 and ₹41,000.
4. Simplify Pay Levels: Merge some pay levels to reduce stagnation and provide clearer promotion paths.
5. Better Career Progression: Fix anomalies in the MACP scheme to ensure employees get timely promotions and financial upgrades.
6. Interim Relief: Provide an advance payment to employees ahead of the final pay commission report, easing inflationary pressures.
7. Merge DA/DR with Basic Pay: Part of the DA will become part of your basic salary to make salary structure simpler and increase future increments.
8. Fix Pending Anomalies: Address any unresolved pay or pension issues from the 7th CPC before new scales come into effect.
9. Improved Retirement Benefits: Commuted pension to be restored after 12 years instead of 15, with periodic pension revisions every five years.
10. Old Pension Scheme (OPS) Back?: Push to scrap the New Pension Scheme (NPS) and revive the OPS, which many employees prefer.
11. Medical Benefits Enhancements: Push for cashless treatment and better facilities under CGHS, based on parliamentary recommendations.
12. Support for Children’s Education: Extend Children Education Allowance and hostel subsidy beyond class 12, up to postgraduate level.
13. Bring Back Need-Based Advances: Reintroduce some interest-free loans for things like house repairs and medical emergencies.
14. Risk Allowance for Rail Staff: Additional monthly allowances for those working in hazardous conditions in the railways.
15. Special Risk Allowance for Defence Civilians: Compensation for those handling explosives or dangerous materials.

What About the Fitment Factor?

There’s talk of a fitment factor between 1.8 and 2.28, which will decide how much your salary increases. The Staff Side wants it to be at least equal to the 7th CPC’s 2.57, meaning a significant hike in minimum wage.

Pension and DA Merger Updates

• Pensioners may see commutation returned earlier, plus pension revisions every five years.
• Merging DA into basic pay is seen as a way to protect income from sudden inflation spikes.

Career Growth & Promotions

The current MACP system can be slow and hollow in terms of real promotions. The new recommendations push for meaningful grade changes and quicker career advancement.

Medical and Risk Allowances

Better hospital networks and digital claims under CGHS, plus risk allowances for railway and defence personnel working in tough conditions.

What’s the Cost?

Experts estimate the pay commission’s recommendations could cost the government ₹2.4 to ₹3.2 trillion, to be spread over two years starting 2026-27.

Important Dates to Watch

• Cabinet approved the 8th CPC formation in January 2025
• Staff Side submitted proposals in February 2025
• Final appointment of commission members expected by late 2025
• New pay scale implementation target: 1 January 2026 (retroactive)

Frequently Asked Questions (FAQs)

Will NPS be scrapped?
The Staff Side wants the Old Pension Scheme back, but the government hasn’t confirmed this yet.

How much of a salary hike can employees expect?
Estimates vary from 13% to over 30%, depending on final decisions.

When will the commission start its work?
Appointments are expected before the end of 2025 to meet the January 2026 timeline.

Will pensioners get equal benefits?
The Staff Side seeks uniform five-year revisions for all pensioners, but the final call lies with the commission.

Is interim relief guaranteed?
While it’s demanded, interim relief depends on government approval.

For detailed calculations and regular updates, keep visiting 8thPayCalculator.in — your go-to site for everything related to the 8th CPC.

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