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8th Pay Commission: Rs 58,500 Minimum Salary Proposal Puts Fitment Factor In Focus

Preparations for the 8th Pay Commission have gathered pace as employee unions begin drafting demands, with the fitment factor emerging as the most closely tracked issue

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Summary

Summary of this article

  • NC JCM begins drafting demands for 8th Pay Commission.

  • Fitment factor debate may lift minimum pay to Rs 58,500.

  • Analysts expect moderate salary hike amid fiscal limits.

The preparations for the 8th Central Pay Commission have now formally commenced, with the National Council of the Joint Consultative Machinery, Staff Side, commencing the process of preparing its memorandum on behalf of central government employees. The talks are now progressing towards the major demands on pay, allowances, and service conditions, with the fitment factor being the most closely watched issue.

In a communication sent to members of the Drafting Committee, the NC JCM Staff Side said a meeting will be held on February 25, 2026, in New Delhi. The meeting will focus on finalising the process and approach for preparing the memorandum to be submitted to the 8th Pay Commission. Members have also been asked to remain in Delhi for a week from that date to allow detailed discussions on various issues affecting employees.

What Is NC JCM, And Why Does It Matter

The National Council, Staff Side, of the Joint Consultative Machinery (NC JCM) is the apex body representing central government employees. It is the official forum through which employee unions and federations have been raising their issues concerning emoluments, allowances, service conditions, and welfare.

Every time the Pay Commission meets, the Staff Side of the NC JCM draws up a memorandum that highlights the demands of the employees. This document serves as an important reference for the Pay Commission while formulating its recommendations.

Drafting Committee Begins Work

According to the communication issued by Shiva Gopal Mishra, Secretary of the NC JCM Staff Side, office accommodation has already been allotted for the 8th Pay Commission at Chandralok Building, Janpath, New Delhi. Once the Commission starts functioning, the Staff Side is expected to submit its memorandum on common service matters.

Meetings of the Drafting Committee will be held at 13-C, Ferozshah Road, New Delhi. Members will discuss and finalise proposals on minimum pay, pay structure, allowances, increments, and pension-related matters. The aim is to present a consolidated set of demands that reflects concerns across employee groups.

Fitment Factor Takes Centre Stage

As the drafting process commences, the fitment factor has again become the focal point. It is a multiplying factor that is used on the existing basic pay and pension to arrive at new figures based on the new Pay Commission.

At present, the minimum basic pay stands at Rs 18,000. With a fitment factor of 2.0, the revised minimum pay would be Rs 36,000. A factor of 3.0 would raise it to Rs 54,000. If a factor of 3.25 is applied, the minimum pay would increase to around Rs 58,500.

With the 7th Pay Commission, the minimum pay was increased from Rs 7,000 to Rs 18,000 with a fitment factor of 2.57, and this is what makes the number so important.

What Estimates Suggest

In recent months, several estimates have emerged on the likely fitment factor for the 8th Pay Commission. Kotak Institutional Equities has pegged it at around 1.8. Ambit Capital has projected a salary increase of 30 to 34 per cent, implying a fitment factor between 1.8 and 2.46.

A more conservative estimate of 1.92 to 2.08 has been proposed by former Finance Secretary S C Garg, who drew attention to the fact that too high an increase may put pressure on the government's finances. Yet, many trade unions are still measuring their demands against the 7th Pay Commission.

FNPO Urges A Higher Multiplier

The issue was further escalated as the Federation of National Postal Organisations made a representation to the NC JCM Staff Side. There are reports that the FNPO has suggested a fitment factor between 3.0 and 3.25, as opposed to a uniform factor.

The organisation has also argued that the previous Pay Commissions did not rationalise pay evenly across levels, resulting in stagnation and anomalies in some grades. To correct this, the organisation has proposed different fitment factors based on seniority.

In addition, the FNPO has demanded a 5 per cent annual increment, higher allowances, and changes to the pay matrix. Its Secretary General, Sivaji Vasireddy, has indicated that these proposals are expected to be discussed with the Drafting Committee before submission to the 8th Pay Commission chairperson.

What Lies Ahead

Though trade unions are demanding a fitment factor of 3.0 or above, most experts are of the opinion that the final recommendation would lie between 2.0 and 2.5.

For now, as the NC JCM Staff Side begins detailed discussions and finalises its memorandum, the fitment factor remains the biggest question mark and the most important number that will determine the eventual rise in salaries and pensions under the 8th Pay Commission.

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