8th Pay Commission: 3.25 Fitment Factor and 5% Annual Increment for Central Government Employees
8th Pay Commission: Preparations for the 8th Pay Commission (8th CPC) are gaining momentum with employee unions putting forward their recommendations. The Federation of National Postal Organisation (FNPO) has submitted a comprehensive set of proposals to the National Council (Joint Consultative Machinery – Staff Side), aimed at reshaping the salary structure for central government employees. A standout highlight of their recommendation is a revised multi-level fitment factor ranging from 3.0 to 3.25.
In a detailed 60-page letter, FNPO Secretary General Sivaji Vasireddy outlined inputs covering pay scales, allowances, and promotions. He mentioned that the National Council (NCJCM) is scheduled to meet with draft committee members on February 25, 2026, to consolidate these inputs before submitting the final draft to the 8th Pay Commission Chairperson, Ranjana Prakash Desai.
Proposal for Multi-Level Fitment Factors
The FNPO argues that the rationalisation factor in previous commissions was not applied consistently, leading to anomalies. To address this, they have recommended distinct fitment factors based on the Akroyd formula, which calculates minimum wage requirements based on a 4-member family unit.
The proposed fitment factors are categorized as follows:
- Foundational Levels (Level 1 – 5): A uniform factor of 3.00 is proposed. This aims to provide a strong correction at the lower end, where inflation has eroded real wages the most.
- Middle Levels (Level 6 – 12): A slightly higher factor of 3.05 to 3.10 is suggested to reflect higher skill requirements and supervisory roles.
- Senior Administrative Levels (Level 13 – 15): A moderate enhancement (3.05 – 3.15) is recommended to recognize administrative leadership while avoiding excessive pay gaps.
- Apex Levels (Level 16 onwards): The highest factors of 3.20 to 3.25 are applied here to preserve hierarchy and avoid compression anomalies in the pay matrix.
8th CPC Illustrative Pay Structure
Based on FNPO’s recommendations, here is how the salary structure could look if the proposals are accepted:
| Level | Status / Category | 7th CPC Entry Pay (Rs) | Proposed Factor | Proposed Min Pay 8th CPC (Rs) |
|---|---|---|---|---|
| Level 1 | Entry Level (Group C) | 18,000 | 3.00 | 54,000 |
| Level 2 | – | 19,900 | 3.00 | 59,700 |
| Level 6 | Group B Entry | 35,400 | 3.05 | 1,08,000 |
| Level 10 | Group A Entry | 56,100 | 3.10 | 1,74,000 |
| Level 14 | – | 1,44,200 | 3.15 | 4,54,300 |
| Level 17 | Apex Scale | 2,25,000 | 3.25 | 7,31,300 |
| Level 18 | Cabinet Secretary | 2,50,000 | 3.25 | 8,12,500 |
Push for 5% Annual Increment
Apart from the base salary revision, FNPO has strongly advocated for increasing the annual increment rate from the current 3% to 5%.
According to the federation, a 5% annual hike is essential to:
- Ensure meaningful financial progression for employees.
- Reduce dissatisfaction arising from career stagnation.
- Align government pay growth with trends in other organized sectors.
This change is particularly vital for Group C and D employees, for whom promotion opportunities are limited compared to Group A and B officers. For them, the annual increment remains the primary source of income growth between pay commissions.
Retention of 7th CPC Matrix
The federation has also requested the government to retain the 7th Pay Commission Matrix system. They believe this system has introduced clarity and predictability in pay fixation, allowing employees to easily calculate their exact basic pay following every increment, thereby reducing administrative disputes.
