Since the formation of the 8th Pay Commission, the expectations of Central Government employees have increased significantly. Meanwhile, the country’s leading trade union organization, All India Trade Union Congress (AITUC), has written a detailed letter to the Commission Chairperson, Justice Ranjana Prakash Desai, presenting 12 major demands related to the interests of the employees. These demands include major proposals like fitment factor of 3.0, restoration of the Old Pension Scheme (OPS), and doubling of annual salary increments. Let us discuss these demands in detail.
Major demands related to salary and allowances
1. Fitment Factor 3.0: The key to salary hike
As its most important demand, AITUC has advocated setting the fitment factor at least at 3.0 under the 8th Pay Commission. Fitment factor is the multiplier used to convert an employee’s existing salary into the new pay structure. The union believes that implementing the fitment factor of 3.0 will significantly increase the salaries of the employees and strengthen their economic condition.
2. Proposal to expand ‘family unit’ for salary calculations
According to an NDTV report, a demand has also been raised to expand the definition of ‘family unit’ used for salary determination. Under the 7th Pay Commission, the family unit was defined as three members (husband, wife and two children). AITUC has proposed expanding it to a five-member body, which will also explicitly include parents of employees. This will provide financial assistance to help employees meet their increasing responsibilities.
3. Demand to increase annual salary increase from 3% to 6%
Currently, under the 7th Pay Commission, employees across all 18 pay levels get an annual increment equal to 3% of their basic pay. AITUC argues that in view of rising inflation and cost of living, this annual wage increase should be increased to at least 6% under the 8th Pay Commission. 4. Minimum-to-maximum salary ratio should be 1:10
Emphasizing the need to ensure equality in the pay structure, the union has said that the ratio between minimum and maximum pay should be fixed at 1:10. Under the current 7th Pay Commission, this ratio is approximately 1:14, with a minimum salary of ₹18,000 and a maximum salary of ₹2,50,000. AITUC believes that reducing this ratio will help reduce pay inequality.
5. Demand to abolish NPS and UPS and restore OPS
AITUC has demanded abolition of the National Pension System (NPS) and Unified Pension Scheme (UPS) for central government employees. The organization has strongly advocated the re-implementation of the Old Pension Scheme (OPS), as it considers pension as the “deferred salary” of the employee. Apart from this, it has also been proposed to implement a 5% increase in pension every five years.
6. Proposal to reduce the period of restoration of pension commutation
At present, after commutation (advance payment) of pension, the commuted amount is restored over a period of 15 years. AITUC has demanded that this period be reduced to 11 to 12 years, so that pensioners can start receiving their full pension sooner.
7. Increasing the limit of leave encashment from 300 to 450 days.
A proposal has been presented to increase the maximum limit of leave encashment at the time of retirement from 300 days to 450 days. This measure will help employees receive a larger lump sum on their retirement.
Demands related to service conditions and other benefits
8. Guarantee of at least 5 promotions during career
Employees should get at least five promotions during their 30-year career in government service. The union argues that under the current system, employees are often stuck in the same position for long periods of time, hindering their career advancement.
9. Increase in risk allowance, medical facilities and leave entitlements
As part of additional benefits, AITUC has demanded enhanced risk and hardship allowance, facility for cashless medical treatment, menstrual leave for women and paternity leave.
10. Special compensation for Railways, CAPF and defense personnel
There has been a demand for better and separate compensation packages for common employees working within the Railways, Central Armed Police Forces (CAPF) and defense sector. According to the proposal, compensation for death while on duty should be fixed at ₹2 crore, for major accidents at ₹1.5 crore, and for minor accidents at ₹10 lakh to ₹25 lakh.
Demands related to employment policy and bonus
11. End contract jobs and outsourcing; fill 15 lakh vacant posts
AITUC has opposed contract employment, outsourcing and lateral entry in central government jobs. Further, it has demanded that approximately 15 lakh vacant posts within the government be filled through regular recruitment processes at the earliest, so as to increase employment opportunities and ensure job security for the employees.
12. Remove bonus limits; Link it to actual salary
A demand has been raised to link Productivity Linked Bonus (PLB) with the actual basic pay of the employees. Currently, the maximum limit for this bonus is ₹7,000, which is equivalent to 30 days’ salary. AITUC has proposed removing this cap and capping the bonus at a minimum of ₹18,000—or an amount equal to 30 days of the employee’s basic salary.
