8th Pay Commission Latest News: AITUC Proposes 3.0 Fitment Factor for Central Government Employees and 5 Promotions in 30 Years

New Delhi, March 20: The 8th Central Pay Commission (8th CPC), officially constituted last year to overhaul the salary and benefit structures of millions of Central Government employees and pensioners, has entered a critical phase of consultation. Although the commission's tenure technically began on January 1, 2026, the actual implementation of revised wages awaits the submission of its final report - expected within an 18-month window - and subsequent Cabinet approval.

As the commission deliberates, major trade unions, including the All India Trade Union Congress (AITUC), have submitted comprehensive proposals aimed at addressing inflation, career stagnation, and social security. 8th Pay Commission Extends Questionnaire Deadline to March 31, 2026: What It Means for Government Employees and Pensioners.

Key Proposals for Salary and Increments Under the 8th Pay Commission

A central pillar of the union's demands is the adjustment of the Fitment Factor. AITUC has formally proposed a minimum multiplier of 3.0. If accepted, this would significantly raise the basic pay and pension for all levels of the federal workforce, directly increasing take-home salaries. Furthermore, unions are pushing for a substantial change to annual raises. Currently, employees receive a 3 per cent annual increment. AITUC has recommended doubling this to 6 per cent, arguing that the current rate fails to keep pace with the rising cost of living and long-term financial requirements of younger staff members.

Career Progression and Promotion Reforms

To combat professional stagnation, the unions have flagged the current Modified Assured Career Progression (MACP) system as insufficient. The new proposal suggests a guaranteed minimum of five promotions over a 30-year career. Advocates for the change argue that more frequent upward movement is essential for maintaining motivation and job satisfaction, providing employees with a clear and predictable path for salary growth throughout their service.

The Pension Debate: OPS vs NPS

Social security remains a contentious issue. AITUC has reiterated the demand to restore the Old Pension Scheme (OPS), seeking to replace the current National Pension System (NPS) and the Unified Pension Scheme (UPS). The union maintains that a defined pension should be treated as a fundamental right of the employee.

Additional pension proposals include:

• Periodic Hikes: A suggested 5 per cent increase in pension every five years to ensure retirees maintain purchasing power.
• Stability: Creating a more predictable income stream for the elderly to mitigate the impact of inflation over decades.

DA Allowances and Healthcare Overhaul

The unions are also calling for a complete revamp of the Dearness Allowance (DA) calculation. Critics argue the current inflation index is outdated; they are demanding a revised index that more accurately reflects modern household expenses.

Other requested benefits include:

• Leave Encashment: Increasing the limit to 450 days.
• Healthcare: Implementation of a truly cashless healthcare system for all employees.
• Family Support: Enhanced provisions for maternity and paternity leave.

Hazard Pay and Bonus Structures, Proposes AITUC

For those serving in high-risk sectors such as Railways, Defence, and the Central Armed Police Forces (CAPF), the unions are seeking higher risk compensation. This includes a proposal for an INR 2 crore payout in the event of a death during active service. Finally, the unions have requested reforms to the bonus system. They are seeking the removal of existing "caps" so that bonuses are calculated based on an employee’s actual basic pay rather than an artificially limited ceiling.

(The above story first appeared on LatestLY on Mar 20, 2026 01:47 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).