8th Pay Commission: Drafting Committee Meets Today; 3.25 Fitment Factor & 7% Annual Increment Among Key Demands

8th Pay Commission: Drafting Committee Meets Today; 3.25 Fitment Factor & 7% Annual Increment Among Key Demands

The groundwork for the 8th Central Pay Commission (CPC) has entered a decisive phase as the Drafting Committee of the National Council (JCM) (Staff Side) convenes in New Delhi for a week-long session beginning today.

The meeting aims to finalise a unified memorandum representing the demands of over one crore Central Government employees and pensioners.

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The session follows the recent allotment of office space for the 8th CPC at the Chandralok Building, signalling that the Commission is entering its operational stage. The panel is chaired by Ranjana Prakash Desai, while the Staff Side deliberations are being led by NC-JCM Secretary Shiva Gopal Mishra.

Graduated Fitment Factor Proposal

A major highlight of today’s deliberations is the proposal for a graduated fitment factor ranging from 3.0 to 3.25, instead of a uniform multiplier. The Federation of National Postal Organisations (FNPO) has suggested a “Multi-Level Fitment Factor” model based on the Akroyd Formula, which calculates minimum living wage requirements for a standard family unit.

Under the proposal:

• Levels 1–5: Fitment factor of 3.00
• Levels 6–12: Fitment factor between 3.05 and 3.10
• Levels 16 & above: Up to 3.25 to address pay compression at senior levels

Illustratively, Level 1 basic pay of ₹18,000 could rise to ₹54,000 under a 3.00 multiplier, while Apex Scale salaries may cross ₹7.3 lakh per month under a 3.25 factor, as per federation projections.

Other Major Demands on the Table

Apart from the fitment factor, several federations have placed key demands before the committee:

• Annual Increment: Increase from the present 3% to 7% (FNPO has suggested 5% as an alternative).
• Family Unit Expansion: Raising the family consumption unit from 3 to 5 members for wage calculation purposes.
• Medical & LTC Benefits: Increase Fixed Medical Allowance from ₹1,000 to ₹20,000 per month in non-CGHS areas; allow Leave Travel Concession (LTC) in cash form.
• Leave Encashment: Raise ceiling from 300 to 400 days.
• Pension Reform: Renewed demand for restoration of the Old Pension Scheme (OPS) in place of NPS/UPS.

The Drafting Committee will remain in Delhi through early March to reconcile proposals from different employee bodies before submitting a consolidated memorandum to the Commission.

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Although the 8th CPC is expected to be implemented retrospectively from January 1, 2026, the actual rollout of revised pay scales and arrears will depend on the timeline for submission of the Commission’s final recommendations and subsequent approval by the Union Cabinet.

For now, today’s meeting marks a significant milestone in shaping the financial roadmap for Central Government employees and pensioners in the coming decade.