8th Pay Commission: Why a 2.57 Fitment Factor May Remain a Distant Dream for Govt Staff

In January this year, the Modi government officially announced the formation of the 8th Pay Commission, which will work on revising the salaries and pensions of more than 1 crore central government employees and pensioners. Since this announcement, there has been a lot of discussion about what changes the commission might recommend, especially regarding the fitment factor, which is the multiplication number used to increase salaries.

Reports suggest that the new commission might consider a fitment factor between 2.57 and 2.86. Figure 2.57 is especially important because it was used in the 7th Pay Commission, where the minimum basic salary was increased from ₹7,000 to ₹18,000, which is about 2.57 times.

Employees' Representatives Want Higher Fitment Factor

The Staff Side of the National Council (Joint Consultative Machinery - NC JCM), which represents central government employees in talks with the government, has demanded a fitment factor higher than the one recommended by the 7th Pay Commission.

Back in February this year, the Staff Side submitted a list of 15 major demands they want to be included in the Terms of Reference (ToR) for the 8th Pay Commission. The ToR outlines the scope and responsibilities of the commission and is expected to be officially issued this month.

Read More, 8th Pay Commission Calculator: See What ₹18,000 Basic Pay Looks Like with 1.92x, 2.0x, and 2.86x Fitment Factors.  

Key Demands by the Staff Side

The demands include a complete review and revision of pay, allowances, pensions, and retirement benefits for various categories of central government employees. This includes industrial and non-industrial staff, officers from the All India Services, defence personnel, paramilitary forces, Gramin Dak Sevaks, and others.

The Staff Side also wants the commission to ensure that the revised pay and benefits come into effect from January 1, 2026. They’ve suggested that the minimum wages should be based on the 15th Indian Labour Conference (1957) recommendations, but updated to reflect today’s modern living standards.

Another notable demand is to merge lower pay levels to address wage inequality. For example, they have proposed merging Level 1 with Level 2, Level 3 with Level 4, and Level 5 with Level 6. This is intended to reduce disparities and ensure fairer salaries.

Will the Government Accept These Demands?

It appears unlikely that the government will agree to all of the demands put forward by the Staff Side. According to Subhash Chandra Garg, the former Finance Secretary, the government may not offer a fitment factor of 2.57 or more. Instead, it could settle for a lower number, possibly around 1.92, due to economic and financial constraints.

This suggests that while there may still be a salary increase, it might not be as high as what the employees are expecting or hoping for.

What Happened in the 7th Pay Commission?

When the 7th Pay Commission presented its recommendations in 2015, the Staff Side had strongly demanded that the minimum basic salary be increased to ₹26,000, which was about 3.7 times the then-existing basic pay of ₹7,000.

This figure was proposed based on the 15th Indian Labour Conference's recommendations and what the representatives felt were the genuine needs of average employees. However, the commission did not fully accept these demands. Instead, it used the Aykroyd formula, a method based on calculating living needs and inflation, and decided on a minimum wage of ₹18,000, using a fitment factor of 2.57.

While this was lower than what was demanded, it still represented a significant increase over the earlier pay.

What Happened in the 6th Pay Commission?

During the 6th Pay Commission, the Staff Side had demanded a minimum basic salary of ₹10,000. Their argument was that employees in the public sector were already earning this much, so central government employees should not be paid less.

However, the commission felt this demand was unrealistic, and after calculations, it recommended a minimum pay of ₹5,479. This amount was eventually increased to ₹6,600 and later rounded up to ₹7,000.

Interestingly, the commission also mentioned that when including allowances, the total salary for employees in A1 cities would reach around ₹10,000. So, even though the exact demand was not accepted, it was partially acknowledged in the final recommendations.

What Are the Likely Outcomes of the 8th Pay Commission?

As of now, inflation and the rising cost of living are making it difficult for many employees to manage their expenses. The declining purchasing power is a serious concern, and because of this, the Staff Side is hopeful that this time, the government will take a more realistic and supportive approach when reviewing salaries and pensions.

In the past two commissions, employee demands were only partially met. However, both current employees and retirees are expecting that the 8th Pay Commission will consider the current economic challenges and offer some meaningful relief in terms of revised salaries, pensions, and allowances.

Conclusion

While the formation of the 8th Pay Commission has rekindled hopes among central government employees and pensioners, past trends indicate that not all expectations may be fulfilled. With economic challenges and fiscal limitations in play, the government may opt for a more conservative fitment factor. Nevertheless, the increasing cost of living and inflationary pressures underscore the urgent need for fair salary revisions. Employees are now looking to the commission—and the government—for a just and balanced resolution that truly reflects the realities of today’s economy.

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