There is renewed optimism among millions of central government employees and pensioners as discussions around the 8th Pay Commission gather pace. Employee organisations have begun formally placing their demands before the government, with the fitment factor, the formula used to revise salaries, emerging as the central issue.
If the government agrees to these proposals, employees could see a substantial increase in their monthly earnings.
Minimum Salary Could See Threefold Rise
At present, under existing rules, the minimum basic salary for central government employees stands at ₹18,000. Employee bodies are seeking a revision to between Rs 54,000 and Rs 58,500 under the 8th Pay Commission.
Such a revision, if approved, would come as significant relief for employees who have been awaiting a pay increase amid persistent inflationary pressures.
Fitment Factor: The Core Of The Demand
The fitment factor is a multiplier used to convert existing salaries into revised pay scales. Under the 7th Pay Commission, the factor was fixed at 2.57, raising the minimum basic salary from Rs 7,000 to Rs 18,000.
Employee representatives are now demanding that the multiplier be increased to between 2.86 and 3.25, arguing that rising inflation and higher urban living costs warrant a stronger revision.
How Rs 18,000 Could Become Rs 58,500
Currently, the minimum basic salary remains Rs 18,000 as per the 7th Pay Commission framework. If the 8th Pay Commission were to adopt a fitment factor of 3.25, the minimum basic pay could rise to Rs 58,500.
Since the fitment factor determines the calculation of basic salary and allowances, such a move would significantly raise overall take-home pay.
Key Meeting Scheduled For February 25
An urgent meeting has been convened in New Delhi on February 25, 2026, to accelerate the 8th Pay Commission process. A committee of employee organisations will prepare a comprehensive draft of their demands during this session.
The discussions, expected to continue for about a week, will cover salary structures, allowances and pensions.
Pensioners Also Set To Benefit
Any increase in the fitment factor would also impact pensioners, as pension amounts are revised proportionately. A higher multiplier would therefore translate into improved pension payouts, offering relief to elderly beneficiaries coping with inflation.
Employees are hopeful that the government will also simplify and rationalise the salary and pension framework in this round of revisions.
DA, HRA And Allowances In Focus
Apart from basic pay, revisions are also expected in components such as house rent allowance (HRA) and dearness allowance (DA). As per current projections, DA may rise to around 63 per cent by March 2026.
However, until the 8th Pay Commission’s recommendations are implemented, DA will continue to be paid under existing rules.
The commission has been given 18 months to submit its report. A final decision will be taken thereafter, factoring in the Union Budget and the broader economic situation. The fitment factor will ultimately determine the scale of salary and pension increases, meaning employees will have to wait for the commission’s final recommendations.
