8th Pay Commission Update: This news could be of great significance to central government employees and pensioners. Currently, all central government employees are awaiting the 8th Pay Commission. There have been demands to revise the salary structure, specifically to increase the basic pay and adjust the fitment factor.
The National Council (Joint Consultative Machinery) has demanded that the government set the minimum basic pay at ₹69,000. The employees’ union has proposed a fitment factor of 3.83; however, the proposal has not yet been approved by the government. Those advocating for the 8th Pay Commission should clearly understand terms such as basic pay, grade pay, pay level, and the fitment factor.
What is a fitment factor?
The employees’ union wants the 8th Pay Commission to set a minimum basic pay of ₹69,000 and a fitment factor of 3.833. The fitment factor is used to calculate the basic pay. For context, the fitment factor was 1.86 under the 6th Pay Commission and was set at 2.57 under the 7th Pay Commission. Now, employees are seeking a fitment factor of 3.833. Any government approval in this regard will depend on existing rules and regulations.
What is basic pay?
Basic pay is a component of a government employee’s salary. It does not include allowances such as Dearness Allowance (DA) or House Rent Allowance (HRA). These allowances are calculated based on the basic pay. The Dearness Allowance is determined according to the employee’s basic pay, while the House Rent Allowance (HRA) is determined based on the category of the city—it is independent of the employee’s basic pay.
What is a pay level?
Under the 7th Pay Commission, a pay matrix consisting of 18 levels was introduced. An employee’s ‘pay level’ reflects their salary. To determine salary increments and future pay, specific tiers—or ‘steps’—of basic pay have been established. Under this commission, the starting basic pay for a Level 1 employee is set at ₹18,000, while for a Level 7 employee, it is ₹44,900.
Why is the ‘fitment factor’ so important?
Employees are demanding an increase in the ‘fitment factor’ specifically to drive up their basic pay. If the commission approves the proposal, an upward revision of the basic pay is certain. However, there has been no official confirmation from the government regarding the proposal. If the fitment factor is raised to 3.833, the basic pay could potentially reach ₹69,000.
Meeting to be held in Mumbai on October 23
A meeting of the 8th Pay Commission is scheduled to take place in Mumbai on October 23. A previous meeting was held in Bengaluru on October 8. During these discussions, employee unions from various states and union territories have raised demands concerning improvements to basic pay, the fitment factor, and pensions. The government constituted the 8th Pay Commission on November 3, 2025. The commission has been granted an 18-month timeframe to submit its report, which is expected to be presented by May–June 2027.