FNPO Demands Minimum Pay of ₹54,000, Fitment Factor 3.00 Before 8th Pay Commission

The Federation of National Postal Organisations (FNPO) has submitted a comprehensive memorandum to the National Council (JCM) Draft Committee of the 8th Central Pay Commission (CPC), calling for a substantial revision of minimum pay, fitment factor, allowances and career progression for Central Government employees.

In its detailed submission dated 7 January 2026, FNPO has urged the Draft Committee to adopt a need-based wage fixation strictly aligned with the 15th Indian Labour Conference (ILC) norms, Supreme Court judgments and post-COVID cost-of-living realities.

Minimum Pay Should Be ₹54,000

FNPO has proposed that the minimum pay at Level-1 under the 8th CPC should be fixed at ₹54,000 per month, as against the present ₹18,000 under the 7th CPC. According to the federation, the existing minimum pay was arrived at by diluting mandatory components such as housing, medical expenses and social obligations.

Based on updated retail prices collected from eight major cities, FNPO calculated that the actual minimum living cost for a three-unit family works out to ₹46,000, which further increases when family size and skill factors are realistically applied.

The federation has also highlighted that most government employees support dependent parents, making the three-unit family norm outdated. Applying the Aykroyd formula, FNPO estimates that the minimum pay requirement for a five-unit family rises to about ₹76,360.

Supreme Court Mandate Must Be Followed

The memorandum strongly refers to the Supreme Court judgment in Raptakos Brett & Co. vs. Workmen (1991), which mandates a 25% addition to minimum wages towards education, medical care, social obligations and recreation. FNPO has alleged that the 7th CPC indirectly diluted this binding requirement by assuming allowances would compensate for these needs.

FNPO insists that this 25% component must be explicitly included in the basic pay calculation and not treated as discretionary.

Fitment Factor of 3.00 Sought

To ensure fair wage revision and prevent distortions between serving employees and new recruits, FNPO has demanded a uniform fitment factor of 3.00.

The federation pointed out that the 2.57 fitment factor under the 7th CPC was based on an under-assessed minimum pay and failed to provide adequate real wage correction, especially at lower levels.

A fitment factor of 3.00, FNPO argued, would:

• Ensure equitable revision across all cadres
• Prevent pay compression at lower levels
• Restore internal pay relativities

Pay Ratio Should Not Exceed 1:8

Another key demand is fixing the ratio between minimum and maximum pay at 1:8, citing international best practices and earlier Pay Commission trends.

FNPO noted that the ratio has widened to nearly 1:14 under the 7th CPC, increasing income inequality within government service. The federation has urged the 8th CPC to consciously correct this imbalance.

Higher Annual Increment Proposed

The memorandum recommends increasing the annual increment rate from 3% to 5%, stating that the current rate fails to provide meaningful career-long wage growth and contributes to stagnation.

Promotion and MACP Reforms

FNPO has proposed significant changes to promotion and MACP rules, including:

• Minimum two increments on promotion
• Ensuring pay after promotion or MACP is never equal to existing pay
• Benchmark-free MACP based solely on satisfactory service
• MACP at 6, 12, 18, 24 and 30 years, instead of the existing 10-year intervals

The federation stated that current provisions have diluted incentives and demoralised employees.

Gramin Dak Sevaks Must Be Included

A major demand in the memorandum is the inclusion of Gramin Dak Sevaks (GDS) within the purview of the 8th Pay Commission.

FNPO argued that GDS employees perform essential government functions and cited Supreme Court observations that they hold posts under the State. The federation expressed dissatisfaction with past committee-based approaches, stating that selective implementation of recommendations has led to long-standing inequities.

Allowances and Transport Allowance Revision

FNPO has called for a comprehensive revision of allowances, many of which continue as fixed lump-sum amounts despite rising costs.

Specifically, it has proposed doubling Transport Allowance rates, pointing out that lower-level employees bear a disproportionately higher commuting burden due to urban expansion and rising fuel prices.

It has also suggested six months’ protection of higher Transport Allowance in cases of transfer or promotion to lower-classified cities.

Implementation from 1 January 2026

Finally, FNPO has demanded that the 8th CPC recommendations be implemented with effect from 1 January 2026, as the effective tenure of the 7th CPC ends on 31 December 2025. It has also reiterated the long-standing demand for merger of Dearness Allowance with pay once DA crosses 50%.

A Call for Restoring Wage Justice

In conclusion, FNPO has urged the Draft Committee to adopt a scientific, judicially compliant and humane approach to pay revision, warning that any fixation below the proposed levels would be economically unrealistic and detrimental to employee morale and efficiency.

The federation has expressed hope that the 8th Central Pay Commission will seize the opportunity to restore fairness, dignity and real wage protection for Central Government employees across all cadres.

View FNPO Memorandum: