8th Pay Commission: Employee Organisation FNPO Demands Multi-Level Fitment Factor and 5% Annual Increment; Asks Government To Retain 7th CPC Matrix System
The Federation of National Postal Organisation (FNPO) has proposed a tiered fitment factor of 3.00 to 3.25 for the 8th Pay Commission to address wage gaps. The union has also demanded raising annual increments from 3 per cent to 5 per cent while retaining the 7th CPC's pay matrix for transparency. Implementation is sought by January 1, 2026.
Mumbai, January 26: As anticipation builds for the 8th Central Pay Commission (CPC), the Federation of National Postal Organisation (FNPO) has submitted a comprehensive proposal to the central government, advocating for a graduated fitment factor and a significant hike in annual increments. The union is calling for a multi-level fitment factor ranging from 3.00 to 3.25, a shift from the uniform multipliers used in previous pay commissions. This move aims to address wage erosion and maintain hierarchical balance within the central government workforce.
Graduated Fitment Factor Proposed by FNPO
The FNPO's proposal suggests a tiered approach to the fitment factor - the multiplier used to determine new basic pay. Recognising that lower-level employees have been most affected by rising living costs, the union has requested a uniform factor of 3.00 for Levels 1 to 5. 8th Pay Commission: How Much Arrears Can Central Govt Employees Get?
For middle-management and senior levels, the proposed multipliers increase slightly to maintain structural parity:
- Levels 6 to 12: 3.05 to 3.10
- Levels 13 to 15: 3.05 to 3.15
- Levels 16 and above: 3.20 to 3.25
According to the FNPO, applying higher factors at the apex levels is necessary to preserve "hierarchical coherence" and prevent anomalies where pay scales for different ranks might otherwise overlap or compress.
Demand for Higher Annual Increments
A standout feature of the union's submission is the request to increase the annual increment rate from the current three per cent to five per cent. The FNPO argues that a five per cent increase would provide more "visible and meaningful financial progression" for employees. The union contends that the current 3 per cent rate often leads to stagnation-related dissatisfaction. By moving to 5 per cent, the government pay structure would align more closely with other organised sectors, helping to retain talent and boost morale across various departments.
Retention of the 7th Pay Commission Matrix
Despite the calls for higher multipliers, the FNPO has advised the government to retain the pay matrix system introduced by the 7th Pay Commission. The union noted that the current matrix has brought "greater clarity and predictability" to pay fixation, effectively reducing disputes over salary progression.
The matrix system allows employees to track their exact basic pay after each annual increment, a feature the union believes should be carried forward into the 8th Pay Commission's framework to ensure transparency. 8th Pay Commission Latest Update: Employee Bodies to Meet Soon to Finalise Salary Hike Demands.
Context and Expected Timeline for 8th Pay Commission
While the central government has yet to officially constitute the 8th Pay Commission, it is traditionally expected every ten years. With the 7th Pay Commission’s recommendations having taken effect on January 1, 2016, many employee bodies are pushing for the new scales to be implemented by January 1, 2026. The proposal by the FNPO is one of the first detailed frameworks submitted by a major employee body, setting the stage for upcoming negotiations between the government and various staff associations regarding the future of central government compensation.
(The above story first appeared on LatestLY on Jan 26, 2026 11:13 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).