The National Council–Joint Consultative Machinery (NC-JCM) has proposed major changes to the Central Government pay structure, including merging several pay levels, doubling the annual increment rate, and increasing the minimum basic salary.

Discussions surrounding the 8th Central Pay Commission (8th CPC) continue to gain momentum as employee unions submit their recommendations for revising the salary structure of Central Government employees and pensioners.

One of the most significant proposals has come from the National Council–Joint Consultative Machinery (NC-JCM), one of the largest representative bodies of Central Government employees. The organisation has recommended simplifying the existing pay matrix by merging multiple pay levels and introducing several structural reforms aimed at improving career progression and salary growth.

It is important to note that these are recommendations submitted by the employee body and have not been approved by the Government or the 8th Pay Commission.

Proposal to Merge Pay Levels

Under the current system, Central Government employees are placed across 18 different pay levels.

To simplify the pay structure, NC-JCM has proposed merging the following levels:

• Level 2 and Level 3
• Level 4 and Level 5
• Level 7 and Level 8
• Level 9 and Level 10

According to the organisation, employees in these levels often perform comparable responsibilities, while the salary difference between adjoining levels remains relatively small.

The proposed merger, it argues, could reduce disparities, simplify promotions, and create a more uniform pay structure.

Special Upgrade Demand for Level 5 Employees

NC-JCM has also sought a one-time upgradation for employees currently working in Pay Level 5.

The proposal recommends moving them directly to Level 6, particularly for employees serving in departments such as:

• Central Secretariat
• Indian Railways
• Defence establishments
• Postal Department

The employee body believes this step would address career stagnation faced by many Group C employees who have remained in the same pay level for extended periods.

Other Major Demands Submitted by NC-JCM

Apart from pay level mergers, the organisation has proposed several changes to the overall salary framework.

Minimum Basic Pay of ₹69,000

One of the key demands is to increase the minimum basic salary of Central Government employees to ₹69,000 under the revised pay structure.

Annual Increment Raised to 6%

At present, eligible employees receive an annual increment of 3%.

NC-JCM has proposed increasing this rate to 6%, arguing that a higher increment would better reflect rising living costs and improve long-term salary progression.

Unified Pay Matrix

The organisation has suggested introducing a single unified pay matrix up to Level 13, making the salary structure easier to understand while reducing anomalies across different grades.

Inflation-Linked Wage Model

Another recommendation calls for a salary structure that responds more directly to inflation, along with corresponding improvements in pension calculations.

8th Pay Commission Continues Data Collection

The 8th Pay Commission is currently gathering financial, administrative and employee-related information from various government departments and stakeholders.

The commission has been interacting with employee unions, departmental representatives and organisations from sectors including Railways and Defence to understand their concerns before preparing its recommendations.

When Will the Recommendations Be Submitted?

The 8th Pay Commission was constituted in November 2025 and has been given 18 months to prepare its report.

Based on the current timeline, the commission is expected to submit its recommendations during 2027.

However, the final implementation will depend on the Government's approval. Historically, there has often been a gap between the submission of a Pay Commission report and the rollout of revised salaries.

No Final Decision Yet

While the proposals submitted by NC-JCM have attracted considerable attention, they remain recommendations at this stage.

The Government will take a final decision only after the 8th Pay Commission examines feedback from various stakeholders, completes its review process, and submits its report. Until then, no changes to pay scales, annual increments or salary structures have been officially approved.

Employees and pensioners are therefore advised to rely only on official announcements regarding the implementation of any recommendations under the 8th Pay Commission.