8th Pay Commission : Central government employees and pensioners are eagerly awaiting the implementation of the 8th Pay Commission. Meanwhile, some good news has arrived. The Federation of National Postal Organizations (FNPO) has demanded a 5% annual increment and an increase in the multi-level fitment factor from 3.0 to 3.25. If the government accepts these demands, central government employees’ salaries will receive a significant annual salary increase, along with higher arrears.
It should be noted that currently, central government employees’ salaries increase by 3% each year. The FNPO argues that a 5% annual increment will improve their financial situation. The FNPO argues that a 3% annual increment is insufficient in today’s inflationary times. This is widening the wage gap between the private and organized sectors. A 5% increment will reduce the salary gap between the government and private sectors.
What is the Fitment Factor?
The salary hike in the 8th Pay Commission will be decided on the basis of the Fitment Factor. The Fitment Factor is the multiplier by which the employee’s old basic salary is multiplied to determine the new salary. The higher the Fitment Factor, the higher the salary increase. The current minimum basic salary is Rs 18,000. If the basic salary is Rs 18,000 and the Fitment Factor is 2.57, the new basic salary will be Rs 46,260. You should know that the 2.57 Fitment Factor was implemented in the 7th Pay Commission.
What is FNPO’s proposal regarding the fitment factor?
FNPO has proposed implementing a multi-layer system for the 8th Pay Commission, replacing a single fitment factor. Each employee has a pay level. Different basic salaries are assigned from Level 1 to Level 18. FNPO has proposed a fitment factor of 3.00 for Levels 1 to 5. A 3.00 fitment factor would increase the minimum basic salary from Rs 18,000 to Rs 54,000. The reason for setting a 3.00 fitment factor for Levels 1 to 5 is the highest real wage loss and the lowest salary base. For Levels 6 to 12, the fitment factor is 3.05 to 3.10.
This aims to maintain the distinction between promotion and seniority and prevent pay compression. For Levels 13 to 15 (Senior Administrative Levels), the fitment factor is 3.05 for Level 13/13A and 3.15 for Level 14/15. The fitment factor is 3.20 for Level 16, and 3.25 for Levels 17 and 18.
When can the 8th Pay Commission be implemented?
A new Pay Commission is implemented every 10 years. The 7th Pay Commission expired on December 31, 2025. The government approved the implementation of the 7th Pay Commission in June 2016, but it was considered effective from January 1, 2016. Therefore, it is believed that whenever the 8th Pay Commission is approved, it will be considered effective from January 1, 2026. It should be noted that the Pay Commission report takes 18-24 months to prepare. This delays approval.
Therefore, the date of implementation of the Pay Commission and the date of salary receipt are not the same. It should be noted that after the meeting on February 15, 2025, the NCJCM (National Council of Joint Consultative Machinery) will prepare a final draft. This draft will be sent to Ranjana Prakash Desai, Chairperson of the 8th Pay Commission. Only then will it be decided how many of these demands the government accepts.