8th Pay Commission: Railway employees seek ₹69,000 minimum salary, 3.83 fitment factor and 6% annual increment

Railway employees have sought a minimum basic salary of ₹69,000, a fitment factor of 3.833 and a higher annual increment of 6% under the 8th Pay Commission. The National Federation of Indian Railwaymen (NFIR) has also proposed at least five promotions during an employee's service, changes to dearness allowance and improvements in pension benefits.

The demands are part of the federation's representation to the 8th Central Pay Commission, which is examining proposals from central government employee organisations, pensioners and other stakeholders before preparing its recommendations.

The proposed minimum salary of ₹69,000 is particularly significant for railway employees because it would represent a substantial increase over the existing minimum basic pay of ₹18,000 under the 7th Pay Commission. However, this is a union demand and not an approved salary revision.

Here are the key demands railway employees have placed before the 8th Pay Commission.

1. Railway employees want minimum basic pay of ₹69,000

NFIR has proposed increasing the minimum basic salary to ₹69,000, using a fitment factor of 3.833. The fitment factor is the multiplier applied to an employee's existing basic pay to calculate the revised basic salary under a new pay commission.

Under the 7th Pay Commission, the minimum basic pay for central government employees was fixed at ₹18,000. Applying the proposed fitment factor of 3.833 to this amount would result in a revised basic salary of approximately ₹69,000.

This would be a significant increase in the minimum basic pay. However, the actual salary revision will depend on the fitment factor and pay structure ultimately recommended by the Commission and accepted by the government.

2. Annual increment may rise from 3% to 6%

The federation has also sought an increase in the annual increment from the existing 3% to 6%.

It has proposed a minimum financial benefit of ₹10,000 through the revised increment structure. The demand is aimed at ensuring that employees receive a more meaningful increase in their basic pay each year.

Annual increments are important because they raise basic pay over an employee's career. A higher increment rate could also influence other salary-linked components, including allowances and retirement benefits.

NFIR has argued that the existing increment structure needs to be improved to provide better financial progression to employees.

3. Five promotions during an employee's career

Career progression is another important issue raised by the railway employees' federation.

NFIR has demanded at least five promotions during an employee's service. The proposal seeks to address concerns about employees remaining in the same grade for extended periods, limiting their salary growth and career advancement.

Promotions and pay-level progression are important because they influence an employee's basic salary, allowances and eventual retirement benefits.

The demand is separate from the annual increment proposal. While increments provide periodic increases in basic pay, promotions can move employees to higher pay levels.

4. DA merger with basic pay when it reaches 25%

NFIR has also proposed merging Dearness Allowance (DA) with basic pay whenever the DA rate reaches 25%.

DA is revised periodically to compensate government employees and pensioners for inflation. It is calculated as a percentage of basic pay.

Merging DA with basic pay would increase the salary component on which several other benefits are calculated. These include certain allowances and retirement-related benefits.

However, the proposal should not be confused with an approved DA merger. The government has not accepted this demand, and the Commission will have to consider it as part of its broader review of employee compensation.

5. Railway employees seek better pension benefits

NFIR has also proposed changes to pension-related benefits for retired railway employees.

Its key pension demands include:

Higher pension: Increase the pension to 67% of the last pay drawn.

Family pension: Fix family pension at 50% of the last pay drawn.

Commutation period: Reduce the period for restoration of commuted pension from 15 years to 11 years.

Pension commutation allows eligible government employees to receive a portion of their pension as a lump sum in exchange for a reduction in their monthly pension.

Under the existing system, the commuted portion is restored after 15 years. NFIR wants this period reduced to 11 years, which would allow retirees to receive their full pension earlier.

The proposals, if accepted, could significantly change retirement benefits for railway employees. However, they remain demands submitted by the federation and are not approved pension revisions.

What happens next under the 8th Pay Commission?

The 8th Pay Commission was constituted on 3 November 2025 and has been consulting central government employee organisations, pensioner associations and other stakeholders.

Different employee organisations have submitted their own proposals on minimum pay, fitment factor, annual increments, allowances and pension benefits. These demands are not uniform and may differ depending on the employee category and the organisation representing them.

The Commission has 18 months from its constitution to submit its recommendations. Its report is therefore expected by May 2027.

For railway employees, the NFIR proposals could have implications extending beyond the monthly salary revision, particularly in terms of annual increments, promotions and retirement benefits.

However, employees should not treat the proposed ₹69,000 minimum basic pay, 3.833 fitment factor or revised pension benefits as confirmed. The final changes will depend on the Commission's recommendations and the government's approval.