8th Pay Commission: NPS Employees' Federation Seeks Higher HRA, Rs 9,000 Transport Allowance

The All India National Pension System (NPS) Employees’ Federation (AINPSEF) has submitted a fresh set of recommendations to the 8th Central Pay Commission, seeking changes to the salary structure for central government employees. The proposals have included a higher fitment factor, revised house rent allowance (HRA) rates, a minimum transport allowance of Rs 9,000 a month for Level 1 employees, and a new method for calculating salaries.

The federation has said that these changes could increase the monthly salary of Level 1 employees by about 65 per cent, taking it from Rs 37,080 to around Rs 61,344. However, these proposals have only been placed before the commission and have not been accepted by the government.

Higher HRA And Transport Allowance Proposed

The federation has proposed that HRA rates should be increased to 36 per cent for employees posted in X-class cities, 24 per cent for those in Y-class cities and 12 per cent for employees in Z-class cities.

It has also requested that HRA should be revised automatically whenever the government approves an increase in Dearness Allowance (DA).

Apart from HRA, the federation has recommended that the minimum transport allowance for Level 1 employees should be fixed at Rs 9,000 per month.

The submission has also sought an increase in the fitment factor to 2.10 from 2.05. According to the federation, this revision has become necessary after proposing that the assumed family size for salary calculations should be increased from three to 4.4 members by including dependent parents.

Salary Formula Under Review

The federation has argued that including dependent parents in the family unit would better reflect the financial responsibilities of many government employees. It has said that this change would support a higher basic pay under the revised salary structure.

Pay Commission Continues Consultation Process

The 8th Central Pay Commission has completed about eight months since beginning its work and has continued consultations with stakeholders across the country.

The commission is chaired by former Supreme Court Justice Ranjana Prakash Desai, while former IAS officer Pankaj Jain is serving as member-secretary, while Professor Pulak Ghosh, a member of the Prime Minister's Economic Advisory Council, is serving as a member.

If the commission follows the usual timeline, it is expected to submit its report within 18 months of its formation, placing the earliest likely submission between February and May 2027. Based on the implementation pattern of earlier Pay Commissions, any approved salary revisions are expected to take effect only by 2029 or 2030.