8th CPC In South India: 6-7% Increment Demand In Focus

The panel led by Justice (Retired) Ranjana Prakash Desai will be in Chennai, Tamil Nadu, for two days and then travel to Puducherry on 9 September.

The National Council of the Joint Consultative Machinery (NC-JCM) has proposed raising the annual increment to 6% in its memorandum. The All India Defence Employees Federation and the Federation of National Postal Organisation have also backed the 6% demand.

The All India New Pension Scheme Employee Federation has also sought an even higher annual increment of 7%. 

The proposals are expected to feature prominently in the representations submitted during the Chennai meetings, while employee and pensioner organisations will continue discussions with the commission in Puducherry.

The unions are also expected to raise demands concerning the fitment factor, Dearness Allowance (DA), House Rent Allowance (HRA), and policies governing postings and transfers, an official said.

Impact Of Increment

The impact of a higher annual increment could be significant over the long term. Under the 7th Pay Commission, the minimum basic pay for a Level 1 employee is ₹18,000. With a 3% annual increment, the basic pay would rise to around ₹23,500 after 10 years.

For a Level 8 employee, the existing basic pay is ₹47,600. If the 8th Pay Commission recommends a fitment factor of 2.15, the revised basic pay would be ₹1,02,340. At a 3% annual increment, the first-year annual basic salary would be about ₹12.28 lakh.

The difference becomes more pronounced over time. At a 5% annual increment, the annual salary after 10 years would be about ₹19.05 lakh, compared with roughly ₹16.02 lakh at 3%. At 7%, the annual salary after 10 years could reach about ₹22.58 lakh.

With consultations continuing through 9 September, employee bodies are expected to press the commission for a higher increment alongside their demands on DA, HRA, fitment factor and transfer-posting policies.

Employee and pensioner organisations have been asked to put forward a range of their demands on pay, allowances and service conditions. The southern leg of the exercise follows consultations in Lucknow and Delhi.