Sunita Somvanshi
The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the Terms of Reference for the 8th Central Pay Commission. The commission is a temporary body with one chairperson, one part-time member, and one member-secretary. It must submit its recommendations within 18 months of its constitution. The government had announced the formation of the 8th commission in January 2025, and the effect of its recommendations is normally expected from January 1, 2026.
The 7th Pay Commission used a fitment factor of 2.57. That multiplier took the minimum basic pay from Rs 7,000 to Rs 18,000. For the 8th commission, employee unions have put forward different fitment demands that would raise that minimum basic pay by a far larger margin.
The Bharatiya Pratiraksha Mazdoor Sangh (BPMS) has demanded a fitment factor of 4.0. That would set a minimum basic pay of Rs 72,000. The National Council JCM Staff Side and the Bharat Pensioners Samaj have asked for 3.833, which works out to about Rs 69,000. The Ministarial Staff Association (Survey of India) has sought 3.61, giving a minimum of about Rs 65,000.
BPMS bases its 4.0 demand on an 86.76 percent rise in per-capita net national income between 2016-17 and 2024-25. It says 1.58 of the factor is meant only to neutralise the impact of dearness allowance. Its math first arrived at Rs 88,524, then was reduced to Rs 72,000 keeping the government’s financial burden in mind.
If a 4.0 fitment is applied, the minimum basic salary of Rs 18,000 would become Rs 72,000. A basic pension of Rs 15,000 would become Rs 60,000. Dearness allowance, house rent allowance, and other allowances would be added on top. Experts have noted that the real increase in total salary is likely to land between 31 and 40 percent, because those allowances are counted within the total.
The gap between the demands is visible in a simple example. At Level 1, a 3.61 fitment gives a salary of Rs 64,980, while a 4.0 fitment gives Rs 72,000. That is a direct difference of Rs 7,020 every month. The JCM Staff Side has built a full pay matrix on the 3.833 figure, with Level 1 at Rs 69,000, Level 6 at Rs 1,35,700, and merged Levels 9-10 at Rs 2,15,100.
Unions also argue that gross domestic product at current prices has risen 165.23 percent and tax revenue 205.41 percent since 2014-15, a trend they cite as evidence that the government can absorb a meaningful increase. A separate pensioner demand is to shorten the commuted pension restoration period from 15 years to 11 or 12 years. More than one crore central government employees and pensioners are affected, and state governments usually adopt the central commission’s recommendations with some modifications. Full details of the commission’s mandate are on the official 8th Central Pay Commission website.
