Discussion around the 8th Pay Commission is gaining momentum as employee organisations begin submitting detailed proposals and final drafts for consideration. In this process, the Federation of National Postal Organisations, or FNPO, issued a detailed memorandum on January 7, 2026, covering key issues such as minimum wage, fitment factor, pay structure, promotions, MACP, allowances, and pension-linked concerns.
This memorandum is important because it does not simply list demands. It also attempts to justify them through calculations, logic, and references to the limitations of the current pay structure. That makes it one of the more structured submissions in the wider 8th CPC discussion.
One of the biggest demands is a sharp revision in the minimum pay at Pay Level 1. FNPO has proposed that the entry-level basic pay should rise from Rs 18,000 to Rs 54,000. To support this demand, the memorandum refers to the 15th Indian Labour Conference norms and the Aykroyd formula for minimum wage calculations. It also discusses expenditure patterns for both a 3-unit and a 5-unit family, arguing that the present salary structure is no longer sufficient in the face of rising living costs.
The fitment factor is another major point raised by FNPO. The organisation argues that the 2.57 fitment factor used in the 7th Pay Commission is inadequate and has called for a minimum fitment factor of 3.0 under the 8th CPC. Alongside this, it has recommended that the ratio between minimum and maximum pay should ideally remain within 1:8 or 1:9 so that pay inequality can be reduced to some extent.
FNPO has also supported the continuation of the pay matrix system but suggested a significant change in annual increment rates. It wants the annual increment to be increased from 3 percent to 5 percent. This demand reflects the view that career progression and salary growth need to be more realistic in an environment of inflation and increasing household expenses.
On promotions and career progression, the memorandum argues that employees should receive at least two increments at the time of promotion. It also proposes a major restructuring of the Modified Assured Career Progression scheme. Instead of the current 10-20-30 year pattern, FNPO has suggested MACP benefits at intervals of 6 years, with a total of five MACP upgradations during service. This is likely to attract attention from employees who have long complained about stagnation in their career paths.
The organisation has further demanded that the recommendations of the 8th Pay Commission should take effect from January 1, 2026. Another important issue raised is the merger of Dearness Allowance with basic pay once DA reaches 50 percent. This has been a long-standing concern among employees and pensioners because any such merger could have a wider effect on salary, pension, and future allowances.
The memorandum also calls for the restoration of Special Pay in place of Special Allowance under FR 9(25). According to FNPO, Special Pay offers broader benefit because it has a clearer bearing on pension, DA, and HRA calculations, while Special Allowance does not provide the same level of long-term advantage.
On classification, FNPO has argued that the old Group A, B, C, and D framework is outdated. It has suggested a more work-based structure, such as Executive and Non-Executive categories, to better reflect the actual nature of duties and responsibilities in modern government service.
Another notable demand is the inclusion of Gramin Dak Sevaks within the scope of the 8th Pay Commission. This remains a sensitive and important issue for a large number of postal workers, and FNPO has once again brought it into the formal discussion.
The memorandum also seeks revision of several allowances. These include Transport Allowance, TA/DA, transfer-related benefits, Composite Transfer Grant, and travel entitlement upgrades. In the area of education-related benefits, FNPO has proposed that Children Education Allowance should be increased from Rs 2,250 to Rs 4,500 and Hostel Subsidy from Rs 7,500 to Rs 13,500. It has also asked for these benefits to be extended up to graduation and professional courses.
Overall, the FNPO memorandum adds fresh weight to the 8th Pay Commission debate. It shows that employee organisations are no longer waiting passively and are instead putting forward detailed, structured proposals. The coming months will be important in determining how far such recommendations influence the final shape of pay revision, pension policy, and service conditions for central government employees.
For employees, pensioners, and organisations that want their genuine demands to reach the Commission in time, this appears to be a crucial phase. Well-prepared submissions made now could play a meaningful role in shaping the future salary and pension framework under the 8th Pay Commission.
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