India's 8th Central Pay Commission faces union calls for higher basic pay and fitment factor

The Eighth Central Pay Commission in India completed its memorandum submission phase on June 15 and will now examine demands from central government employees and pensioners before issuing its final recommendations. The commission, operating under terms set in October 2025, has about ten months left to propose revisions for roughly 5.5 million serving employees and 6.9 million pensioners.

Employee unions and associations have submitted memoranda urging a higher fitment factor, a substantial rise in the minimum basic pay, restoration of the Old Pension Scheme in place of the National Pension System, and improvements to allowances such as HRA, risk pay, bonuses and leave benefits. The government recently announced a 2 % hike in Dearness Allowance, bringing the overall rate to 60 %.

The commission has already held consultations in Delhi, Ladakh, Jammu & Kashmir, Hyderabad, Telangana and Maharashtra, with further visits planned to Lucknow, Bhubaneswar and Kolkata. Salary increases will depend on the fitment factor the government adopts; analysts expect it to exceed 2.5, while unions are asking for a factor of 3.15.