The 8th Pay Commission Salary Hike January 2026 .
And as the 8th Pay Commission expected in 2026 gets closer, central government employees across India have started placing strong demands related to salary, allowances, pensions, and job benefits.
These demands come after years of rising inflation, higher living expenses, and slow salary growth since the 7th Pay Commission (2016).
Top 10 Demands of Government Employees
Below are the Top 10 most important demands , explained in clear and simple language with extra details.
1.
Higher Fitment Factor (3.0× Demand)
The biggest demand is to increase the fitment factor , which directly decides the new basic salary. The fitment factor decides how much an employee’s basic salary will increase .
Current fitment factor: 2.57×
Demand: 3.0× or higher
This would increase basic salary by almost 40%–55%
Why employees want this?
2.
Minimum Pay Should Increase to ₹26,000 – ₹30,000 Per Month
Right now, the minimum basic salary in central government jobs is ₹18,000 .
Demand: ₹26,000–₹30,000 for lower-level staff (Level 1–3).
Why?
3.
Automatic DA Merger When DA Reaches 50%
Dearness Allowance (DA) increases twice a year, but it does not get merged with basic pay automatically.
Demand: 50% , it should be automatically merged into the basic salary.
Why?
💡
DA (Dearness Allowance) is extra money given to government employees and pensioners to help them cope with inflation . It increases from time to time so that their salary doesn’t lose value when prices of daily things go up.
4.
Restore the Old Pension Scheme (OPS) One of the strongest nationwide demands is to bring back the Old Pension Scheme , especially for employees who joined after 2004.
Why this demand?
OPS gives a guaranteed lifelong pension
NPS depends on market performance
Employees fear that NPS will not provide enough pension for retirement
OPS provides social security to families
Unions are pushing very strongly to bring back guaranteed pensions.
5.
Higher HRA (House Rent Allowance) House rent has grown rapidly in all cities, and employees say existing HRA is too low.
Current HRA:
X cities: 24%
Y cities: 16%
Z cities: 8%
Demand:
X cities: 30%
Y cities: 20%
Z cities: 10%
Why?
6.
Increase Travel Allowance (TA) and LTC Benefits
Transport Allowance (TA) and Leave Travel Concession (LTC) have not been revised for years. Employees want better Travel Allowance (TA) and improved Leave Travel Concession (LTC) .
Why this demand?
Fuel prices have gone up
Public transport costs are higher
Flight and train ticket costs have increased
LTC rules have remained unchanged for years
Government staff want updated travel benefits that match today’s expenses.
7.
Regular Annual Increment Should Be Increased (From 3% → 5%) Right now, employees get a 3% annual increment . Demand: 5% per year .
Why?
8.
Reduce Income Tax Burden on Salaried Employees Employee unions want the government to give more income-tax relief.
Demands include:
Higher standard deduction
More tax benefits under 80C
More relief for home loans
Lower tax for pensioners
Special tax category for government staff
Why?
9.
Correct Pay Anomalies in Pay Matrix Levels Many employees feel their Pay Matrix Levels are not fair.
Examples of complaints:
Lower-level jobs have slow promotions
Different posts with similar work get different pay
Grade Pay differences from 6th CPC still exist
Some technical and clerical posts want upgradation
Employees want a revision of the pay matrix to ensure fairness.
Pay Matrix depends on importance of the job, skills required, and the employee’s experience/responsibility.
Pay matrix is decided based on the job level and responsibilities .
Jobs requiring higher qualification or special skills are placed in higher levels.
Experience and seniority move an employee to higher cells within the same level.Posts involving more workload, risk, or critical duties get higher pay levels.
10.
Better Medical Benefits Under CGHS Medical costs have increased sharply in recent years.
Demand:
More CGHS empanelled hospitals
Better cashless treatment options
Higher reimbursement limits
Faster processing of medical claims
Improved facilities in Tier-2 and Tier-3 cities
Why?
CGHS stands for Central Government Health Scheme .
In short and simple: central government employees, pensioners, and their families through approved hospitals and wellness centres.
Summary of Top 10 Demands
Fitment factor increased to 3.0×
Minimum basic pay: ₹26,000–₹30,000
Automatic DA merger
Old Pension Scheme restoration
Higher HRA
Increased TA/LTC
Annual increment: 5%
Lower income tax
Correct pay matrix anomalies
Better medical benefits
Conclusion The demands of government employees ahead of the 8th Pay Commission reflect long-pending issues related to salary fairness, work–life balance, and financial security.
From a higher fitment factor to better allowances, pension reforms, and improved health coverage, employees expect the Commission to address the rising cost of living and modern workplace needs.
If even a few of these Top 10 Demands are accepted, it could significantly improve employee morale, boost productivity, and strengthen the overall efficiency of government services.
As 2026 approaches , all eyes are on how the central government and the Pay Commission respond to these expectations—and whether the final recommendations truly support the growing workforce that forms the backbone of public administration.
Also Read: How 8th Pay Commission will impact the Economy of the Country
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