8th Pay Commission: Employees are in for a treat, expecting a threefold salary increase

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8th Pay Commission

8th Pay Commission: Both excitement and anticipation are growing among central government employees regarding the 8th Pay Commission. This time, the focus of discussion is the fitment factor, which determines the increase in employees’ basic salaries. Employee organizations are demanding a fitment factor of 3.00 to 3.25. If this demand is accepted, the minimum basic salary could increase from ₹18,000 to ₹54,000 or even more. This means a threefold increase in salaries is possible.

Drafting Process Gains Pace

The 8th Pay Commission process is now formally moving forward. A meeting of the National Council (Staff Side) has been convened in New Delhi on February 25, 2026, where the demands of employees and pensioners will be drafted in the form of a joint memorandum. It is expected that this discussion could last approximately a week. The Commission’s office has also been established, indicating that the review process has entered an active phase.

Why is the Fitment Factor Important?

The fitment factor is the coefficient by which the existing basic salary is multiplied to determine the new salary. A fitment factor of 2.57 was implemented in the 7th Pay Commission. At that time, the minimum basic salary increased from ₹7,000 to ₹18,000. Now, employee organizations say that a higher fitment factor is necessary this time, given rising inflation, housing expenses, and the cost of living.

What are the employee organizations’ demands?

Employee representatives are demanding a fitment factor of at least 2.86. Many organizations want a coefficient of 3.00 to 3.25. They propose that the minimum salary should be between ₹54,000 and ₹58,500. They also demand a 5 percent annual salary increase. Unions say that a factor lower than 2.86 will not be acceptable, especially since the previous factor was 2.57.

What could the minimum wage be?

Under the 7th Pay Commission, the minimum basic salary is currently ₹18,000. If a fitment factor of 3.0 is applied, the minimum wage could exceed ₹54,000. A 3.25 factor could take it to around ₹58,500.

Employee organizations argue that this increase is necessary given inflation, the rising cost of urban living, and stagnant real incomes. A higher fitment factor will directly benefit pensioners, as their pensions will be revised accordingly.

What will be the impact on allowances and DA?

In addition to the fitment factor, discussions are also underway on the formula for house rent allowance, dearness allowance, and pension revision. Under the current structure, DA is expected to reach approximately 63 percent in March 2026. However, until the recommendations of the new Pay Commission are implemented, the rules of the 7th Pay Commission will remain in effect.

Further Process and Timeline

The 8th Pay Commission has been given approximately 18 months to submit its report. A memorandum prepared by employee organizations will be submitted to the Commission. The government will then make a final decision, taking into account the financial situation, budget, and fiscal deficit. The government will make the final decision on the fitment factor.

What the Big Picture Says

For employees, the 8th Pay Commission is seen as not just a salary revision, but an opportunity to address income stagnation. If the government approves a fitment factor of 3.0 or higher, it could prove to be the largest increase in the minimum wage in recent years. The coming months will be crucial on this issue.

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