8th Pay Commission: Fitment Factor 2.0 Demand Can Be On Cards — Check Expected Salary Revision

One of the key stakeholders who would be involved in deliberations with the 8th Pay Commission may push for a fitment factor of 2.0 for the revision of salaries of central government employees bracketed under Pay Band 1, a senior union leader indicated.

"We are expecting the minimum salary to be raised to at least Rs 36,000," said M. Raghavaiah, the staff side leader of the National Council-Joint Consultative Machinery, while speaking to NDTV Profit.

NC-JCM, one of the main stakeholders in the process, is an official platform to resolve disputes between the government and its staff through dialogue. It is headed by the Union Cabinet secretary and comprises bureaucrats and top employee union leaders.

The Rs 36,000 minimum salary demand indicates that the staff side of NC-JCM may seek a fitment factor of 2.0, as the entry-level minimum salary, excluding the dearness allowance, presently stands at Rs 18,000.

Fitment factor, notably, is the multiplier used to raise the wages. The last pay panel, which was the 7th Pay Commission, had recommended a fitment factor of 2.57, which increased the entry-level minimum salary from Rs 7,000 to Rs 18,000.

If the Rs 36,000 minimum salary demand is accepted, then the 8th Pay Commission will have to recommend a fitment factor of 2.0. Since the fitment factor for wage revision is applied uniformly across all five levels of the first pay band, here's a look at the expected salary revisions:

- Under Pay Band 1 and Level 1, the entry-level salary stands at Rs 18,000. If a fitment factor of 2.0 is proposed, then it will rise to Rs 36,000 (18,000 x 2).

- In the same band, the entry-level salary under Level 2 stands at Rs 19,900. If revised with the fitment factor of 2.0, it will rise to Rs 39,800 (19,900 x 2).

- The entry-level wage under Level 3 is currently Rs 21,700. It may rise to Rs 43,400 (21,700 x 2).

- In Level 4, the minimum salary is Rs 25,500, which can rise to Rs 51,000 (25,500 x 2) if the 8th Pay Commission recommends a fitment factor of 2.0.

- In Level 5, the entry-level salary presently is Rs 29,200. If the fitment factor of 2.0 is applied, it can rise to Rs 58,400.

The 8th Pay Commission, which is to be formally set up in the coming days, will hold deliberations with all stakeholders before recommending the fitment factor and other modalities for salary revision.

The move benefits approximately 50 lakh central government employees and 65 lakh pensioners.

The panel would be headed by a chairman and will also comprise two more members, Union Minister Ashwini Vaishnaw said in a press briefing on Jan. 16.

Pay commissions are generally formed once in a decade by the government. As compared to the last pay panel, which is the 7th Pay Commission, the date of formation of the 8th Pay Commission has been delayed, employee union leaders point out.

The 7th Pay Commission was announced in February 2014 and the panel required around 18 months to submit its report. The recommendations were approved by the government after another six months, and the revised salaries and pensions were rolled out from July 2016.

However, the revision came into effect retrospectively from January 2016 and employees were paid arrears for the six-month period. The estimated impact of the 7th Pay Commission's implementation was Rs 1.02 lakh crore in fiscal 2017, as per government data.

Two key members of the NC-JCM expect arrears to be rolled out this time as well as the 8th Pay Commission may seek time beyond Jan. 1 to submit its report.

"The date of implementation should be Jan. 1, 2026. This is our demand. The 8th Pay Commission may take more time to submit its report, but the government should retrospectively implement the report from January 2026," Raghavaiah said in an earlier conversation with NDTV Profit.

Echoing the views, Shiv Gopal Mishra, the NC-JCM (staff side) secretary, said the government should implement the salary and pension hike from January 2026. If the targeted deadline is missed, then the employees "should at least be given arrears," he told this publication last month.