8th Pay Commission: The 8th Pay Commission, led by Justice Ranjana Desai, is currently conducting meetings with employee and pensioner groups as it travels across the country. Employee representatives have requested a fitment factor of 3.83 from the Commission, which could potentially result in a 283% increase in basic pay, raising it from Rs 18,000 to Rs 68,940. However, no official decision has been announced by the Commission regarding the fitment factor or basic pay adjustment.
The outcome of the 8th Finance Commission’s decisions will directly impact around 50 lakh central employees and 70 lakh pensioners.
8th Pay Commission demands
Employee associations are seeking a minimum basic pay of Rs 69,000 from the 8th Finance Commission, along with the restoration of the previous pension system and increased House Rent Allowance (HRA).
Fitment factor explanation:
The fitment factor determines the salary increment formula. In the previous 7th Pay Commission, the fitment factor was 2.57. If the current demand for a 3.83 fitment factor is accepted, employees’ salaries will rise proportionately to their current basic pay. Notably, during the 7th Finance Commission, the minimum basic pay escalated from Rs 7,000 to Rs 18,000.
Ongoing meetings nationwide:
The 8th Pay Commission is actively conducting discussions throughout the country, having already held sessions in Delhi, Jammu and Kashmir, and Lucknow, engaging with unions and pensioners. The 8th Pay Commission was established in November 2025 and has 18 months to finalize its report. The report will be submitted to the government, which will then determine the salaries and pensions of employees based on the Commission’s recommendations.
HRA is directly linked to basic salary
HRA is directly linked to basic salary, so any increase in the fitment factor will directly impact this allowance. Employees posted in metropolitan cities, in particular, can benefit the most. Depending on the fitment factor recommended by the Commission, monthly rent allowance can vary by thousands of rupees. As per reports employees shouldn’t focus solely on the revised basic salary. Experts Says, Most discussions surrounding the 8th Pay Commission have focused on the increase in basic pay, but employees should also consider other salary components, such as HRA.
Since HRA is calculated as a percentage of basic salary, different fitment factor outlooks can give very different results for total monthly income.