Mumbai, January 31: As the tenure of the 7th Pay Commission officially concluded on December 31, 2025, over 1.1 crore central government employees and pensioners are now looking toward the 8th Central Commission (8th CPC) for relief against inflation. While the Union Government has approved the commission's formation and notified the Terms of Reference (ToR), the primary point of contention remains the "Fitment Factor" - the multiplier that will determine the jump in basic salaries. Current projections and employee union demands suggest a significant increase from the previous multiplier of 2.57, with the potential for the minimum basic pay to cross the INR 35,000 mark.

The Fitment Factor Multiplier Debate: 2.86 vs. 3.25

The fitment factor is the most crucial variable in the pay revision process. Under the 7th Pay Commission, a factor of 2.57 was used to set the minimum salary at INR 18,000. 8th Pay Commission Arrears Calculation: How Delayed Salary Hikes May Be Calculated and Paid.

For the 8th Pay Commission, two distinct schools of thought have emerged:

Expert Projections: Financial analysts and early institutional estimates suggest a fitment factor ranging between 2.28 and 2.86. At a 2.86 multiplier, the minimum basic pay would rise to approximately INR 51,480.

Union Demands: Major employee bodies, including the Federation of National Postal Organisations (FNPO), have formally proposed a graded fitment factor ranging from 3.0 to 3.25. They argue that this higher range is necessary to address "pay erosion" caused by a decade of rising living costs.

Projected Salary Impact

If the government leans toward a more conservative yet substantial fitment factor, the salary structure across levels could see a shift of 30 per cent to 35 per cent.

Pay Level Current Basic (7th CPC) Estimated (2.57 Factor) Estimated (2.86 Factor)
Level 1 (Entry Level) INR 18,000 INR 46,260 INR 51,480
Level 10 (Group A) INR 56,100 INR 1,44,177 INR 1,60,446
Level 18 (Cabinet Sec) INR 2,50,000 IN 6,42,500 INR 7,15,000

Note: These figures represent basic pay. Total take-home salary will include revised House Rent Allowance (HRA) and Transport Allowance (TA), while the Dearness Allowance (DA) is expected to be reset to zero upon implementation.

Timeline and Arrears Outlook

Although January 1, 2026, is the effective date for the 8th Pay Commission, actual disbursements are unlikely to begin immediately. Historically, pay commissions take 18 to 24 months to finalise recommendations. Experts anticipate that the final notification may only arrive in FY 2026-27. However, because the revision is retroactive to January 2026, employees are likely to receive substantial arrears covering the gap between the old and new salary structures. 8th Pay Commission: Central Govt Employees Look to Union Budget 2026 for Signals on Faster Rollout.

Expectations from Union Budget 2026

With the Union Budget 2026 scheduled for tomorrow, February 1, stakeholders are watching for any fiscal allocations toward the Pay Commission's implementation. While a full rollout is not expected in the budget speech, any mention of the "Fitment Factor" or a special fund for salary revisions would provide the first official hint at the government's stance on the 3.25 multiplier demand.

(The above story first appeared on LatestLY on Jan 31, 2026 07:54 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).