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Eighth Pay Commission Council: Salary Hike of ₹51,000 Conditional on Government Acceptance of Demands
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Aaj Tak
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Eighth Pay Commission Council: Salary Hike of ₹51,000 Conditional on Government Acceptance of Demands

The meetings of the Eighth Pay Commission (8th Pay Commission) are ongoing. Following sessions held in Chennai-Puducherry, meetings will take place in Chandigarh from September 16 to 18. Among the most significant demands voiced in Chennai is raising the Fitment Factor to the level of 3.83.

The demand for increasing the Fitment Factor is central to discussions with unions of central government employees and other stakeholders. If the government under N. Modi accepts this demand, over 50 million central employees will receive a substantial salary increase. Upon acceptance of this requirement, the minimum salary for Level-1 employees will increase by approximately ₹51,000, positively impacting employees across various pay scales. Furthermore, this will benefit around 69 million pensioners.

This demand was put forward in Chennai by the All India Union of Pensioners. However, it is not the only union insisting on a high fitment factor; the National Council of Joint Consultative Mechanisms (NC-JCM), the All India Defence Employees Federation (AIDEF), and the All India Union of New Pension System Employees have also proposed a fitment factor of 3.833. If this demand is met, there will be a significant rise in salaries for all central employees from Level-1 to Level-10.

The minimum basic salary for Level-1 will reach approximately ₹69,000. In addition to the fitment factor, demands are being made regarding pay matrices, Dearness Allowance (DA), House Rent Allowance (HRA), and other benefits and allowances. Nevertheless, the final official decision is yet to be made.

Since the final report of the Eighth Pay Commission Committee, chaired by Justice Ranjana Prakash Desai, is planned to be submitted in May-June 2027, no decision has been reached yet.

The fitment factor that is being demanded to be increased is an indicator used by the Pay Commission to convert the previously adjusted basic salary of an employee or retired pensioner into a new adjusted basic salary. The calculation is done using the formula: (current basic salary x fitment factor = new basic salary). Under the Seventh Pay Commission, the fitment factor was 2.57, which led to an increase in the minimum basic salary from ₹7,000 to ₹18,000. Now, the Eighth Pay Commission demands it be set at 3.833, which is 1.26 higher.

Regarding the fitment factor formula, it is 'new basic salary: current basic salary x FF'. Currently, the fitment factor for central employees is 2.57, according to the Seventh Pay Commission, which caused the minimum basic salary to rise from ₹7,000 to ₹18,000. If it is raised to 3.83, the minimum basic rate will be ₹68,940 (₹18,000 x 3.83). This means a direct increase in the minimum salary for employees of ₹50,940.

If we consider the salary hike for Levels 2 to 10, the basic salary of a Level-2 employee of ₹19,900 will rise to ₹76,217, and for Level-3—from ₹21,700 to ₹83,111. Further, the minimum salary for a Level-4 employee will increase from ₹25,500 to ₹97,665, for Level-5—from ₹29,200 to ₹1,11,836, for Level-6—from ₹35,400 to ₹1,35,582, and for a Level-10 employee—from ₹56,100 to ₹1,14,863.

Thanks to this increase in the fitment factor, in addition to 50.14 million government employees receiving a salary hike, about 69 million pensioners will also see an increase in their pension. At a factor of 3.833, if the government approves it, a monthly pension of ₹25,000 will rise to ₹95,750.

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Discussion of the 8th Departmental Commission Composition: How Employee Salaries Will Change from Junior Staff to Officers
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Discussion of the 8th Departmental Commission Composition: How Employee Salaries Will Change from Junior Staff to Officers

The eighth departmental commission composition is operating actively. Currently, a commission meeting is taking place in Chennai. During this time, employees and pensioners are demanding a significant salary increase, insisting on an income boost of approximately three times. However, the final report has not yet been prepared by the commission.

Even after the report is prepared, government approval will be required before the salary increase under the eighth departmental commission composition can be announced. Nevertheless, if the formula of the seventh departmental commission composition is followed and a fitment factor of 2.57 is applied, employee salaries will increase significantly.

Let's examine what the basic salary will be for junior staff (Group-D/Pay Matrix Level-1), teachers (Pay Matrix Level-6/7), and officers (Level-10).

The current basic salary for Group-D employees, i.e., Level 1, is 18,000 rupees. With the application of the 2.57 fitment factor under the eighth departmental commission composition, this amount will increase to 46,260 rupees. Subsequently, allowances such as DA and HRA will be added.

The basic salary for teachers at Level 6 in the seventh departmental commission composition is 35,400 rupees. However, with the application of the 2.57 fitment factor after the eighth departmental commission composition comes into effect, this basic salary will reach 90,978 rupees. Thus, the basic salary of a primary or TGT teacher will approach 91 thousand rupees.

The current basic salary for these employees is 56,100 rupees. However, if the government sets the fitment factor at 2.57, this salary could reach 144,177 rupees. This means that the basic salary of officers will be 1.44 lakh rupees.

If the minimum pension for a former employee is 9,000 rupees, it could increase to 23,130 rupees. It is crucial, however, that the fitment factor remains at 2.57.

According to AICPI-IW data, inflation allowance indexing may reach 64%, affecting employee salaries
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According to AICPI-IW data, inflation allowance indexing may reach 64%, affecting employee salaries

According to the AICPI-IW data released in July 2026, a significant increase in the indexation of allowances (DA & DR) for civil servants and pensioners is expected. The Labour Bureau's workforce index rose by 1.3 percentage points in July. When calculating the 12-month average, the inflation rate could be 64.38%, potentially leading to an increase in DA to 64 percent. However, the final decision will be made by the government.

Currently, the government has not announced changes to the inflation allowance amount for July. It is anticipated that the official announcement may occur in October, as the increase in the inflation allowance for July often takes place between September and November.

The calculation of DA is based on the 12-month average of the AICPI-IW. This formula uses the model established in 2001, with calculations based on the base year of 2016. The inflation rate in July was 153.2, indicating the possibility of increasing the inflation allowance to 64 percent.

The current inflation allowance is 60 percent. If DA increases to 64 percent, it will lead to a substantial rise in salaries. For example, for a level one employee with a basic salary of 18,000 rupees, adding 60% DA results in an increase of 10,800 rupees, whereas at 64% DA, the increase will be 11,520 rupees, meaning a monthly salary increase of 720 rupees.

Similarly, for a level seven employee with a basic salary of 44,900 rupees, the monthly increase will be 1,796 rupees. Level six employees will receive an increase of more than 1,400 rupees, and level five employees—an increase of 1,168 rupees monthly.

It should be noted that the government indexes the inflation allowance for workers and the support allowance for pensioners twice a year. Although the government has already increased the inflation allowance under the Seventh Pay Commission for January, the increase for July has not yet been implemented.

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