STAFF SIDE OF NATIONAL COUNCIL-JCM for CENTRAL GOVERNMENT EMPLOYEES
MEMORANDUM
Submitted to 8 th Central Pay Commission On Common Service Matters of Central Government Employees & Existing Pensioners Demands 14th of April, 2026
Select those which are applicable
Basic Pay, Minimum Pay, Increment / Annual Increment, Level in Pay Matrix, Maximum of Pay Level, Any Other
Answer :-
Central Government Employees are the backbone of Government of India and plays a very important role in implementing its policies and programs and ensure that the same reaches the citizens throughout the country.
The major workforce are in the Group C & B category who are Industrial Employees in the Railways and Ministry of Defence. Pay is the foundation of Dignity, Motivation and Efficiency in Public Service.
8th CPC must ensure that real wages are protected and reasonably enhanced and not merely adjusted. Minimum Pay must be based on a scientific living wage formula covering Food, Housing, Education, Health Care, Transport and the Technological / Digital Needs.
The Present system of treating a family as 3 Units should be dispensed with and the Family should be treated as 5 Units (employee 1 Unit, Spouse 1 Unit (No Gender Discrimination), 2 Children, 0.8 Units each of the parents 0.8 Units. This works out to a total of 5.2 Units (Rounded off to 5 Units).
This is in conformity with the legal obligations under the Maintenance and Welfare of Parents and Senior Citizens Act which mandates Children to support dependent parents. It is pertinent to mention here that in the Social Security Code 2020 in the definition of "family" dependent parents, and female employees can include their parent-in-laws as part of their family.
The fact is that Government services is not merely contractual but a status that carries expectation of fairness and dignity. The observations of the Hon'ble Supreme Court in Bhupendra Nath Hazarika Vs State of Assam highlight that the legitimate aspirations of employees should not be frustrated and that the government must act as a model employer by ensuring fairness, trust, and transparency in its treatment of employees. The current Minimum Pay is inadequate and must ensure a decent standard of living and not subsistence.
The earlier 2700 Kcal norm is inadequate.
The ICMR recommendation of ~3490 Kcal should be adopted, especially for physically demanding work.
The food basket must include:
- Adequate protein sources (milk, eggs, meat, fish)
- Dairy consumption (~30-35 litres/month for 5 units)
- Fruits, vegetables, and balanced nutrition
- Spices, beverages, and processed food
Government employees are Drivers of Governance and Development. Fair Pay enhances Productivity, Morale and Talent Retention. Pay Revision is an investment in human capital and economic growth, not merely expenditure. Therefore, considering the average retail prices of the Food items, Clothing expenditure, 7.5% for Housing, 20% for Fuel, Electricity, Water Charges, 25% for Skill Development, 25% for Additional Expenditure towards marriage, recreation, festival etc., as per Supreme Court Judgment of 1991 and Technology Charges at the rate of 5%, the minimum pay computed by the Staff Side National Council (JCM) is Rs. 69,000/- for 5 Unit Family. Accordingly, the Fitment Formula for the existing employees and pensioners will be 3.833. The Minimum Wage and the Fitment Fator calculated by us is enclosed as Annexure-I of this Memorandum.
We propose the rate of annual increment should be increased from the existing 3% to 6%. We propose the following Merger of Pay Scales and the Revised Pay Scales of 8th CPC.
1) Level 2 & Level 3 should be merged in to one pay scale at level 3.
2) Level 4 & Level 5 should be merged in to one pay scale at level 5.
3) Level 7 & Level 8 should be merged in to one pay scale at level 8.
4) Level 9 & Level 10 should be merged in to one pay scale at level 10.
5) Existing employees in Level 5 should be upgraded and merged with Level 6 as a one time measure.
Annual Increment as already mentioned will be 6% of the Basic Pay in the proposed Pay Scale.
The gap between Minimum and Maximum Pay should be balanced to avoid excess disparity. The ratio should not been more than 1:12. This will help in reducing income in equality, improving morale and reinforcing the Governments role as a model employer committed to fairness and Social Justice. Moreover the Pay Scales also should not have a wide gap between one pay scale and the other pay scale and a structural balance may be maintained.
Government Expenditure on Salaries
At present, the Central Government spends approximately 13% of its revenue expenditure on salaries, allowances, and pensions. With the implementation of the 8th Central Pay Commission (CPC), this expenditure is expected to rise during 2026-27.
However, such expenditure should be viewed as an investment rather than a burden because:
- Higher salaries increase purchasing power
- Increased consumption boosts demand
- Higher demand leads to greater tax collections
Need for a Sound Pay Structure
A fair and rational pay structure is essential to:
- Attract talented individuals to government service
- Retain skilled and experienced personnel
- Ensure efficiency in governance
- Rising cost of living
- Changing economic conditions
Principle of Fair Treatment
The 7th Central Pay Commission (Para 1.29) emphasized that government service is not merely contractual but carries a status with expectations of fairness and dignity.
Further, the Hon'ble Supreme Court in Bhupendra Nath Hazarika vs State of Assam observed that:
- Legitimate aspirations of employees should not be frustrated
- The Government must act as a model employer
- Fairness, transparency, and trust must guide employer-employee relations
Central Government employees contribute significantly across sectors:
- Revenue Departments Enhance tax collection
- Defence & Paramilitary Forces including Defence Civilian Employees Protect national security
- Railways - Ensure transportation
- Scientific Community Drive innovation
- Administrative Services Implement policies
The functioning of government departments cannot be judged on profit and loss principles, as the State has a social obligation to provide essential services such as defence, infrastructure, health, food security, postal services, and public utilities. Moreover, India is one of the lowest ratios of Government employees to population globally. Only about 1.6% of the population is employed in Government service.
In the Union Budget 2025-26 the Central Government has allotted Rs. 2.85 Lakh Crore for salaries and Rs. 2.65 Lakh Crore for pensions, together making up nearly Rs. 5.5 Lakh Crore of Expenditure. Expenditure on pay and allowances and pension is approximately accounting for about 12 to 15% of the total union budget expenditure including pension for the Armed Forces, Pay & Allowances. Excluding Defence it is 7.1% on salary + 4% on pension.
India is currently ranked 4th in global GDP (2025), with an economy valued at approximately $4.3 trillion and growing at around 6.5%.
According to IMF projections:
- India is expected to become the 3rd largest economy by 2027
- GDP likely to cross $5 trillion
- Growth projected at 6.2% (2025) and 6.3% (2026)
- Comparatively:
- China: ~4.0%
- USA: ~1.8%
- Global average: ~2.8%
This demonstrates that India's economic position is strong and expanding, providing adequate fiscal space to ensure fair compensation for government employees.
At this juncture, it is considered appropriate to briefly advert to the growth trends of two additional macroeconomic parameters over the same period. The first pertains to India's GDP at current prices. As reported in the Economic Survey 2025-26, GDP at current prices has increased from Rs. 1,24,67,959 crore in FY 2014-15 to Rs. 3,30,68,145 crore, reflecting a growth of 165.23%.
The second parameter relates to the revenue collection of the Government. As per figures reported in the respective Union Finance Bills of India, the combined direct and indirect tax revenue has risen from Rs. 12,41,681 Crore in FY 2014-15 to Rs. 37,92,250 crore, registering a growth of 205.41%.
Both these parameters assume considerable significance, as they represent the aggregate outcome of policy implementation in which Government employees play a pivotal role. More importantly, the substantial and sustained growth, particularly in revenue collection, clearly evidences the enhanced fiscal capacity of the Government. This, in turn, establishes that the Government is well-positioned to comfortably absorb the financial implications arising from a meaningful revision of minimum wages and the broader expenditure associated with the implementation of revised pay structures pursuant to the recommendations of the 8th Central Pay Commission.
- Extension of revised pay structures to Central Government Pensioners who are retired before 1/1/2026
- Extension of revised pay structures to autonomous bodies approved by Parliament and other Autonomous Institutions of Government of India and Union Territories (effective 1 January 2026)
- Revision of Gramin Dak Sevaks (GDS) pay scales to strengthen rural services.
- BSNL & DOT Pensioners
The fixation of salaries and allowances for Central Government employees should not be guided solely by revenue expenditure considerations. It must take into account:
- Their critical role in nation-building
- The need to attract and retain talent
- The broader economic benefits of higher wages
We also propose that all Central Government employees may be exempted from Professional Tax being recovered by the State Governments from the salary of the employees. Already the employees are subjected to payment of Income Tax and GST etc. Over and above this the Central Government employees are burdened with the recovery of Perfossnal Tax. 8th CPC may kindly recommend for exemption of Professional Tax from the Wages of the employees.
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