8th Pay Commission: Fitment factor of 3, OPS revival, 11-year pension commutation among AITUC’s key demands

The All India Trade Union Congress (AITUC) has sought sweeping changes in salaries, pensions and service conditions of central government employees, including a fitment factor of at least 3.0, restoration of the Old Pension Scheme (OPS) and a reduction in the pension commutation period to about 11 years, in its submission to the 8th Pay Commission, according to a report by ET.Responding to an 18-question questionnaire posted on the 8th Pay Commission’s website, the trade union also demanded a minimum annual increment of 6%, at least five promotions during a 30-year career, higher compensation for high-risk services and expanded leave benefits.Below are the key demands raised by AITUC before the 8th Pay Commission:

Fitment factor of 3.0

AITUC has urged the commission to recommend a fitment factor of at least 3.0, which determines the multiplier used to revise salaries of central government employees and pensioners.

Minimum pay and higher annual increments

The union has proposed increasing the annual increment rate to at least 6%, compared with the 3% increment across all pay levels under the 7th Pay Commission.

Five family units for salary calculations

Under the 7th Pay Commission, salary calculations were based on three family units — husband, wife and two children. AITUC has proposed increasing this to five family units, including parents, which could significantly increase basic pay.

Promotion reforms

The union has demanded at least five promotions during a 30-year service period, arguing that the Modified Assured Career Progression (MACP) scheme does not adequately address 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,” AITUC said in its submission.

Restoration of the Old Pension Scheme

AITUC has also asked the commission to scrap the National Pension System (NPS) and Unified Pension Scheme (UPS) and restore the Old Pension Scheme (OPS).The union said pension is a deferred wage and a right of government employees, and recommended a 5% increase in pension every five years, as suggested by a parliamentary committee.

Pension commutation reforms

Currently, pensioners who opt for commutation receive reduced pension for 15 years before full restoration. AITUC has proposed reducing this commutation period to 11–12 years.

Changes in dearness allowance calculations

The union has also raised concerns over the All India Consumer Price Index for Industrial Workers (AICPI-IW), which is used to calculate dearness allowance (DA).AITUC said several items have been left out of the index basket and demanded a revision of the CPI index in consultation with trade unions.

Leave encashment and employee benefits

AITUC has demanded increasing the maximum leave encashment at retirement from 300 days to 450 days.The union has also called for cashless medical treatment, menstrual leave, longer paternity leave and enhanced hardship allowances.

Higher compensation for risky services

The union said employees in Railways, Central Armed Police Forces (CAPF) and defence civilian services face unique risks and should receive higher compensation.AITUC proposed the following accident compensation levels:

Opposition to the Agniveer scheme

AITUC has opposed recruitment under the Agniveer scheme, arguing that armed forces recruitment should be permanent rather than short-term.The union said those recruited under the scheme should be regularised with attractive entry pay and clear career progression, along with benefits such as housing, ration and allowances.

Opposition to contractual hiring and lateral entry

AITUC also criticised contractual employment, outsourcing and lateral entry in government services, and urged the government to fill about 15 lakh vacant central government posts through regular recruitment.

Changes in productivity-linked bonus

Currently, productivity-linked bonus (PLB) for certain government employees is capped at Rs 7,000 for 30 days, while the minimum basic pay in the central government is Rs 18,000.