Last day of memorandum submission with 8th pay commission nears:Fitment factor of 3 will increase employees’ basis salary to ₹45,000

The central government has approved the rules and terms of the 8th Pay Commission. Following this, major changes are now expected in the salary, pension and allowances of approximately 55 lakh serving employees and 69 lakh pensioners. The commission has been given 18 months to submit its recommendations. What is Fitment Factor and why is it important? Fitment Factor is the coefficient or multiplier that is used to revise the basic salary of central employees and pensioners. Its role is most crucial in determining the new salary structure. In the 7th Pay Commission, a fitment factor of 2.57 was implemented, which became effective from 2016. Under this, if an employee’s basic salary was ₹15,000, it increased to ₹38,550. Demands of Employee Unions and Experts’ Estimates For the 8th Pay Commission, central government employee unions and associations have primarily demanded an increase in the fitment factor and a significant hike in minimum basic pay. Some unions have proposed increasing the fitment factor from 3 to 5 or even higher. However, pension experts believe that such large demands may not align with financial realities. According to pension experts, the commission may change the method of calculating minimum wages. For this, the family consumption units could be increased from three to five, and consideration could be given to setting the fitment factor at 2.64. How much could employees’ in-hand salary increase? The final salary increase will depend on what the commission recommends and what the government approves. This can be understood through two different examples… Experts say that even if the government keeps a lower fitment factor than demanded by employee unions, there will still be a significant increase in government expenditure and employees will see a respectable jump in their salary. How Much Benefit Was There in the 7th Pay Commission? For comparison, the 7th Central Pay Commission had increased the minimum salary of the lowest level employees to ₹18,000 per month. Along with this, the salary of newly recruited Class-I officers was fixed at ₹56,100. Due to this, a total increase of 14.29% was recorded in total salary and pension from January 1, 2016. 8th Pay Commission team is touring states Currently, the 8th Pay Commission is touring different states. The commission’s team is meeting with employee associations and unions there. During this, the demands of employees and their memorandums of proposals are being noted. The unions have mainly demanded salary revision and improvement in post-retirement benefits. When will 8th Pay Commission be implemented and when will the report come? The central government had approved the terms of the 8th Pay Commission in October 2025 and gave the panel 18 months to submit the report. Although the 8th Pay Commission is assumed to be implemented from January 1, 2026, replacing the 7th Pay Commission, the commission is expected to take approximately 18 months to complete its work. The commission has extended the last date for submitting memorandums to June 15, 2026. After this, suggestions from all stakeholders will be examined and final recommendations will be prepared. Employee organizations say that if the report is submitted by June-July 2027, the government’s liability to pay arrears will increase significantly. After the recommendations are accepted and implemented, the central government will pay employees the complete arrears for the intervening period. Currently, employee organizations are pressuring for higher multipliers and better retirement benefits, while experts say that the final decision will be taken only after considering the country’s financial situation. What is a Pay Commission? The Central Pay Commission is a panel formed to review the salary, allowances, pension and other benefits of central government employees. Generally, a new pay commission is constituted in the country every 10 years, which gives recommendations to improve the living standards of government employees according to the changing economy and inflation.