Speculation around the 8th Pay Commission continues to grow, as central government employees await clarity on implementation and salary revisions. Meanwhile, reports suggest the government may not agree to several union demands, raising doubts about expectations of a significant pay hike.
In recent weeks, workers’ unions have submitted several proposals on salary hikes under the 8th Pay Commission, and there were detailed discussions with the panel. The suggestions include: a higher fitment factor and the merger of (DA) with basic pay. But media reports suggest that unions themselves now acknowledge that not all demands are likely to be accepted.
What is the main demand of the union bodies?
One of the main demands raised by trade unions for the 8th Pay Commission is the fitment factor, with calls to increase it to 3.83. They clarify that such an adjustment is crucial to offset the steady decline in purchasing power due to inflation and rising living costs over the years.
What is fitment factor?
A is a mathematical multiplier used by the Central Pay Commission to convert an employee’s pre-revised basic salary (or pension) into the new, revised basic salary structure.
The primary formula used is:
Current basic pay x fitment factor = New basic pay
For instance, the 7th Central Pay Commission implemented a fitment factor of 2.57, which raised the minimum basic salary of central government employees from ₹7,000 under the 6th Pay Commission to ₹18,000.
So the math goes – ₹7,000×2.57= ₹18,000
The concept of the fitment factor became a talking point during the 6th and 7th Pay Commissions, as earlier pay panels followed more complex approaches to revise salaries, including pay rationalisation, DA mergers and need-based wage calculations.
Will the fitment factor increase?
According to union leaders, as reported by ABP Ananda, the government is unlikely to accept this demand fully, given the broader financial burden it would entail.
Any sharp increase in salaries would likely push state governments to revise pay scales as well, leading to a significant rise in pension and retirement-related expenses over the long term. And hence, the government may eventually opt for a balanced or moderate formula instead of approving a steep hike.
8th Pay Commission: All you need to know
The is significant because it is expected to affect more than 1.1 crore beneficiaries, including central government employees and pensioners, as well as their families.
So far, India has witnessed seven pay commissions. The government established the First Pay Commission in January 1946, and since then, a new pay commission has generally been constituted every 10 years. The Centre constituted the 8th Pay Commission on 3 November 2025.