8th Pay Commission Update: Will Govt Reject 2.57 Fitment Factor? Here’s Look Back At 6th & 7th Pay Panels

The central government announced in January the formation of the 8th Pay Commission. Once implemented, it will revise the pay, allowances, and pensions of over 1 crore central government employees and pensioners. The commission is expected to come into effect from January 1, 2026.

The fitment factor determines the basic pay hike for central government employees. It multiplies the existing basic salary to arrive at the revised one. A higher factor means a higher pay hike. In the 7th Pay Commission, the fitment factor was 2.57, which raised the minimum basic salary from Rs 7,000 to Rs 18,000.

As per media reports, The Staff Side of the National Council (JCM) which negotiates with the government is demanding a fitment factor higher than 2.57. They argue that 2.57 doesn’t meet the current cost-of-living needs and are pushing for a more generous hike in the upcoming pay revision.

Speculations suggest the government might stick to a fitment factor between 2.57 and 2.86. There are concerns that the demand for a higher factor could be rejected, especially with the government focusing on fiscal discipline ahead of the 2026 implementation.

The NC JCM Staff Side submitted 15 major demands, including:

- Higher fitment factor

- Timely revision of allowances and pensions

- Inclusion of all categories like defence, paramilitary, and Gramin Dak Sevaks

- Implementation date: January 1, 2026

In 2015, the Staff Side demanded a minimum wage of Rs 26,000, nearly 3.7 times the then-basic pay. But the commission fixed it at Rs 18,000 using the Aykroyd formula, citing affordability and past trends. The 2.57 fitment factor was applied instead of the 3.7 demanded.

In the 6th Pay Commission, the Staff Side demanded a minimum wage of Rs 10,000. However, the commission rejected the demand and calculated the base pay at Rs 5,479. After revisions, the final minimum pay was set at Rs 7,000 — a decision that disappointed many employees at the time.

The 8th Pay Commission’s Terms of Reference (ToR) are expected to be finalised soon. While employee unions continue to push for a higher fitment factor and better pay, it remains to be seen how the government will respond — and whether 2.57 will stay or be replaced.