8th Pay Commission : Latest Update on Fitment Factor, Salary of Employees will Increase
The Central Government constituted the 8th Pay Commission in November 2025, and it officially came into effect from January 2026. This development is expected to bring major changes in the salaries and pensions of central government employees and retirees. Around 50 lakh serving employees and nearly 69 lakh pensioners are likely to benefit once the recommendations are implemented.
Key Demands Raised by Employee Unions
The Federation of National Postal Organisations has put forward important demands related to the pay structure under the 8th Pay Commission. One of the main demands is an increase in the fitment factor from 3.0 to 3.25. The union has also requested that the annual increment rate be increased from the current 3 percent to 5 percent. If these proposals are approved, employees in lower and middle pay levels may see a meaningful rise in their income.
Understanding the Fitment Factor Impact
The fitment factor plays a crucial role in revising basic pay under a new Pay Commission. To understand its impact, consider the example of a Level-1 employee whose current basic salary is ₹18,000. If a fitment factor of 3.25 is applied, the revised basic salary may increase to around ₹58,500. This revision would significantly improve take-home pay, allowances, and future pension benefits.
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Proposal for Multiple Fitment Factors
According to FNPO, the same fitment factor should not apply to all pay levels. The organisation has proposed different fitment factors for different levels, similar to earlier Pay Commissions. This approach is based on the Aykroyd Formula, which calculates wages by considering the basic needs of a four-member family. These needs include food, clothing, housing, education, and other essential expenses required for a dignified life.
Upcoming Discussions and Final Decision
The General Secretary of FNPO has stated that these proposals will be included in the draft recommendations of the 8th Pay Commission. A meeting of the National Council Joint Consultative Machinery is scheduled for 25 February 2026. After discussions with employee representatives, the final recommendations will be submitted to the Chairperson of the Pay Commission.
What This Means for Employees and Pensioners
If the government accepts these demands, it will provide substantial financial relief to central government employees and pensioners. Higher salaries, better increments, and improved pensions would help them cope with rising living costs and inflation, making the 8th Pay Commission a major milestone.
Disclaimer
This article is for informational purposes only. Pay Commission recommendations are subject to government approval and may change. Readers are advised to rely on official government notifications and consult relevant authorities for final and accurate information.
