🔍 8th Pay Commission Update: Will 2.57 Fitment Factor Be Rejected Again? What We Learned from the 6th & 7th Commissions best

📅 Updated on: May 20, 2025
✍️ By: Finance Insight Team

The central government’s recent move to constitute the 8th Pay Commission has reignited conversations about salary revision, pension benefits, and, most notably, the fitment factor—a crucial number that determines the-extent-of-salary-hikes-for-over-1-crore-central-government-employees-and-pensioners.

📌 What is the Fitment Factor?

The fitment factor is a multiplication number used to revise the existing basic salary of government employees. For-example,-in-the-7th-Pay-Commission,-a-fitment-factor-of-2.57-was-used,-which-increased the-minimum-basic-pay-from-₹7,000-to-₹18,000.

Now, with the 8th Pay Commission in place, employee unions are demanding a higher fitment factor, but early signs suggest the government may not accept this proposal—just as it didn’t in earlier commissions.

⚖️ Staff Side’s Demands: What Are They Asking For?

The-Staff-Side-of-the-National-Council – Joint-Consultative-Machinery-(NC-JCM),-which-represents government-employees-in-pay-negotiations,-submitted-15-key-demands-in-February-2025-for-inclusion-in the Terms of Reference (ToR) of the new commission.

Key demands include:

🧾 Revising pay scales, allowances, and pensions for all categories of central government employees (including Gramin Dak Sevaks, defence, and paramilitary forces).
📅 Making salary changes effective from January 1, 2026.
💰 Fixing minimum wages based on the 15th Indian Labour Conference (1957) norms, updated for current cost of living.
🔄 Merging overlapping pay levels (e.g., Level 1 with 2, Level 3 with 4) to reduce pay disparity.

However,-the-most-contentious-point-remains-their-demand-for-a-higher-fitment-facto–above-2.57.

📉 Why the Government May Reject a Higher Fitment Factor Again

Despite the Staff Side’s push, experts and past patterns suggest the government is unlikely to accept a high fitment factor.

👉 Subhash Chandra Garg, former Finance Secretary, recently said the government might propose a fitment factor of 1.92—far below the Staff Side’s expectations.

The cost to the exchequer is a major concern. Any steep salary hike could significantly impact the fiscal deficit, especially when the economy is grappling with high inflation and slow revenue growth.

🔍 Looking Back: What Happened in the 6th & 7th Pay Commissions?

To better understand the current scenario, let’s revisit how previous commissions handled fitment factor demands.

📊 Pay Commission	Year	Staff Side Demand	Approved Fitment Factor	Final Minimum Basic Pay
6th CPC	2006	₹10,000	Approx. 1.86×	₹7,000
7th CPC	2016	₹26,000	2.57×	₹18,000
8th CPC (expected)	2026	₹26,000+ (as per inflation)	Likely between 1.92× – 2.86×	TBD

🧠 6th Pay Commission Recap

The-Staff-Side-demanded-a-minimum-salary-of-₹10,000.
The Pay Commission only approved ₹5,479, which was later increased to ₹7,000.
The final package with allowances in A1 cities touched around ₹10,000—partially meeting demands.

💡 7th Pay Commission Recap

Employees demanded a minimum wage of ₹26,000 and a fitment factor of 3.7.
The-commission-approved-a-minimum-basic-salary-of-₹18,000-with-a-fitment-factor-of-2.5-—again,-falling-short-of-demands.

🏛️ The Economic Reality: Why It’s Different This Time

With rising inflation, shrinking real income, and increased living costs, central government employees argue that their purchasing power has declined significantly.

They want the government to:

✅ Consider real-time cost of living.
✅ Ensure fair pension adjustments for retirees.
✅ Align salaries with private/public sector peers.

However, the government’s budgetary constraints and upcoming general elections in 2029 could shape its final decisions.

🔮 What Can Employees Expect from the 8th CPC?

So-far,-there’s-no-official-word-on-the-proposed-fitment-factor. However, based on various expert opinions and government advisors:

The most probable fitment factor could be between 1.92 and 2.86.
There may be a modest increase in allowances and pensions.
The final recommendations could be rolled out by late 2025.

Despite hopes, there’s no guarantee that the Staff Side’s demand for a fitment factor higher than 2.57 will be accepted.

📢 Final Word: Will History Repeat Itself?

History shows that employees’ demands have consistently been scaled down during final recommendations. While the Staff Side has made a strong case, the government’s fiscal stance and economic conditions will ultimately dictate the outcome.

🔔 Employees and pensioners should stay updated and manage expectations. While a revision is certain, the extent of the hike remains in question.