New Delhi: The drafting committee of the National Council-Joint Consultative Machinery (Staff side) NC-JCM has put together a 51-page common memorandum detailing demands related to the 8th Pay Commission, which notably emphasises the rights of central government pensioners.
Some of the key highlights for pensioners in the memorandum submitted on April 13, 2026, include:-same fitment factor for employees and pensioners, gratuity amount up from Rs 25 lakh to Rs 75 lakh, one rank one pension, reduced pension commutation period of 11 years, merging dearness relief (DR) with basic pay when it reaches 25% and more Central Government Health Scheme (CGHS) facilities.
Here we take you through the 10 key demands for the pensioners raised by the drafting committee of NC-JCM in its common memorandum.
1. Same fitment factor for employees and pensioners in 8th Pay Commission
While recommending a fitment factor of 3.833, the drafting committee of NC-JCM has recommended that the fitment factor for employees and pensioners should be the same and pensioners should get arrears from January 1, 2026. The term of the 7th Pay Commission ended on December 31, 2025.
2. One rank one pension scheme for civilian pensioners
On the lines of One Rank One Pension (OROP) scheme given to armed forces personnel, the drafting committee of NC-JCM has recommended a similar scheme for all central government pensioners. It means employees retired prior to 2016, after that and those who will retire in the future will get the same pension if their designation at the time of retirement was the same.
3. Rollback of NPS/UPS and restoration of OPS
The drafting committee has recommended that the 8th Pay Commission should abolish the National Pension System (NPS) and Unified Pension Scheme (UPS) and bring back the Old Pension Scheme (OPS). They argue that NPS has already made social security in old age uncertain and dependent on market forces. The central government started NPS on January 1, 2004, while UPS came into effect from April 1, 2025.
4. Increase maximum gratuity (DCRG) limit to Rs 75 lakh
NC-JCM has demanded that the maximum gratuity limit should be raised from Rs 25 lakh to Rs 75 lakh in light of current salaries and inflation.
It further says gratuity should be calculated on the basis of 25 effective working days instead of 30 days in a month. The committee also urges the 8th Pay Commission to remove the existing gratuity ceiling of 16.5 times the emoluments.
5. Pension restoration after 11 years
NC-JCM has recommended cutting down the pension restoration after commutation to 11 years from 15 years. At present, pensioners can commute up to 40% of their pension as a lump sum. This means they receive a lower pension for 15 years. The drafting committee is looking to shorten this timeframe.
6. Increase full and family pensions
The drafting committee has suggested to the 8th Pay Commission that full pension should be increased to 67% from 50% of the last pay drawn or the average of the last 10 months of emoluments.
As far as family pension is concerned, the drafting committee wants it to increase from 30% of the last pay drawn to 50%.
It has also asked to increase the enhanced family pension period up to 70 years of age.
7. Increase age-based pension by 5%
Citing a Parliamentary Standing Committee’s recommendation that pensioners should get an additional pension of 5% every five years after superannuation, the drafting committee has proposed the following structure for the consideration of the 8″ CPC.
8 .Merge Dearness Relief (DR) with basic pay
The drafting committee has recommended that when DR reaches 25%, it should be merged with the basic pay in the 8th Pay Commission. So far, there is no concept of the merger of basic pay with DR. The benefit of such a merger is that DR is given on the basic pay. After a merger, the basic pay will rise, as a result, the DR hike will be of a higher amount after every such merger.
9. Leave encashment of 600 days
Employees on retirement get leave encashment of up to 300 days. The drafting committee has proposed to increase the encashment limit to 600 days. It says a government employee may be permitted to encash part of such accumulated leave say 50% to meet certain financial exigencies if he/she has put in 20 years of service or more.
The committee has also proposed that an ex-service man after joining as a civilian employee should also be permitted the encashment of leaves.
10. Expand CGHS centres to 150 cities
The drafting committee has recommended expansion of CGHS facilities to 150 cities in India from 81 cities at present. Cashless treatment facilities should be extended to employees covered under CGHS and CSMA Rules and also to pensioners, as per the recommendations.
NC-JCM says pensioners have to pay 120 months’ contribution for getting a pensioner CGHS card with lifetime validity. Employees and pensioners should be exempted from this contribution and the government contribute it on their behalf, recommends the drafting committee to the 8th Pay Commission.
