8th Pay Commission demands: Commuted pension after 11 years, fitment factor of 3, revised DA calculation; what AITUC wants from 8th CPC

A fitment factor of 3.0, bringing back the Old Pension Scheme (OPS), revising dearness allowance (DA) calculations, boosting leave encashment to 450, and cutting down the commuted pension duration to 11 years are just a few of the demands that All India Trade Union Congress (AITUC) has made to the 8^th Pay Commission chairperson Justice Rangana Prakash Desai.

In a reply to the 18-question questionnaire posted on the 8^th Pay Commission’s website, AITUC has also asked for a minimum annual increment of 6%, at least five promotions and better compensation for services such as Railways and defence civil employees. Here, we will walk you through the 12 key demands of AITUC concerning the 8^th Pay Commission.

1. 3.0 fitment factor demand

The fitment factor is basically the multiplier for payout revisions of central government employees and pensioners.

In a letter to the 8^th CPC, AITUC has asked them to recommend a fitment factor of at least 3.0 to significantly boost the salaries of central government employees.

Also Read: 8th Pay Commission proposals: CGHS facility, parent care leave for 1 year; what union territory, central autonomous body employees want from 8th CPC

2. Minimum pay and increments

Annual increments play a crucial role in the salary of central government employees. According to the 7^th Pay Commission, the annual increment stands at 3% for all 18 employee levels.

AITUC has suggested that the annual increment rate should be increased to at least 6%.

3. 5 family units for salary calculations

The 7^th Pay Commission calculated basic salaries on the basis of the three family unit (husband, wife and two children). AITUC has requested the 8^th CPC to increase the family unit count to five including parents. Such a step can significantly increase the basic salary of all employees.

Also Read: Rs 54,000 minimum basic pay demand for 8th Pay Commission: Why this employee body wants 3.0 fitment factor for central government employees

4. Promotion reforms sought

AITUC is also pushing for at least five promotions over an employee’s 30-year career. AITUC argues that the current Modified Assured Career Progression (MACP) scheme does not adequately address the problem of stagnation. “What is observed is the stagnation of the employees in majority categories for years together since the promotions are based on the merger number of higher posts,” writes AITUC in its letter.

5. Old Pension Scheme restoration

The union has also demanded that the 8^th Pay Commission should scrap the National Pension System (NPS) and Unified Pension Scheme (UPS) and restore the Old Pension Scheme (OPS), stating that pension is a deferred wage and a right of government employees.

AITUC also says pension should be increased by 5% every five years as recommended by the Parliamentary Committee.

Also Read: From Rs 55 to Rs 2.50 lakh: How salaries have changed in Pay Commissions & why employee bodies want to fix salary ratio in 8th Pay Commission

6. Pension commutation

Pensioners who commute their salary gets reduced pension for 15 years before it is fully restored. AITUC wants the 8^th Pay Commission to cut this duration to 11-12 years.

7. Dearness allowance (DA) calculation

AITUC writes there are many flaws in the present All India Consumer Price Index for the Industrial Workers as many items have been left out in the basket. It writes that central trade unions have been asking the Labour Ministry to revise the CPI Index in consultation with them.

The government calculates DA on the basis of AICPI-IW.

8. 450 days of leave encashment

Government employees at the time of retirement can take a maximum leave encashment of 300 days. AITUC has called for higher risk and hardship allowances, cashless medical treatment, 450 days leave encashment, and additional benefits such as menstrual leave and longer paternity leave.

9. Higher compensation for risk and hardship of Railways and defence employees

AITUC says employees of Railways, Central Armed Police Forces (CAPF) and defence civilian employees face unique risks, hardships and responsibilities, so their pay and allowances must reflect these realities.

AITUC suggests the following accident compensations for Railways, CAPF and defence civilian employees

Rs 2 crore for death

Rs 1.5 crore for major accidents

Rs 10–25 lakh for minor accidents.

10. Opposes Agniveer scheme

AITUC has also demanded that recruitment to the armed forces should be permanent and not in the form of Agniveer. It also writes to all those young soldiers recruited in the name of Agniveer should be regularised and their entry pay must be attractive, with clear progression and strong non-monetary benefits like housing, ration and adventure allowances.

11. Opposition to contractual hiring and lateral entry scheme

AITUC has also opposed contractual employment, outsourcing and lateral entry of employees in different central government jobs.

AITUC has urged the government to fill around 15 lakh vacant central government posts through regular recruitment.

12. Make minimum Productivity Linked Bonus equal to basic pay

Productivity Linked Bonus (PLB) is paid to some employees of Government such as Railways, Postal staff whilst Non-Productivity Linked Bonus is given to specified Central Government employees including some in Armed Forces.

At present the wages are capped at Rs 7,000/- for 30 days bonus, whereas the minimum basic pay in Central Government is Rs18,000/- for 30 days.

AITUC recommends that the minimum 30 days bonus should be the actual basic pay of the employees and there should not be any artificial ceiling on the same.

13. Uniform pay across departments

AITUC recommends the 8^th Pay Commission to maintain a uniform pay structure across different government departments.

Pay should not be benchmarked with private sector industries, as government jobs have different responsibilities and restrictions, writes the employee body.

14. Pay ratio

AITUC recommends the lowest-to- highest salary ratio at 1:10. The 7^th Pay Commission ratio stands around 14 with the lowest salary being Rs 18,000 and the highest being Rs 2,50,000.