Millions of central government employees started 2026 with a clear goal: a significant boost to their basic pay. Since the 7th Pay Commission’s term ended on December 31, 2025, all eyes are now on the newly formed 8th Pay Commission. While the government usually revises salaries every ten years, the current surge in inflation has pushed employee unions to demand a much higher “fitment factor” than ever before.
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The Multiplier Debate: 2.57 vs. 3.25
The “fitment factor” is simply the number the government uses to multiply your current basic pay to arrive at a new salary. In 2016, the government used a factor of 2.57. Today, the Federation of National Postal Organisations (FNPO) and other unions argue that this old number no longer covers the actual cost of living.
Instead, they are demanding a tiered fitment factor ranging from 3.00 to 3.25.
Minimum Wage Demand: If the government accepts a 3.00 factor, the minimum basic pay would jump from ₹18,000 to ₹54,000.
The 3.25 Factor: At the highest requested multiplier, that same entry-level salary would hit nearly ₹58,500.
Annual Increments: Unions also want to ditch the standard 3% annual hike. They are now pushing for a 5% yearly increase to keep pace with private-sector standards.
What the Experts Actually Predict
While unions are aiming high, financial analysts offer a more cautious outlook. Firms like Ambit Capital suggest a more likely salary increase of 30% to 34%. This would put the actual fitment factor somewhere between 1.83 and 2.46. Even at these “conservative” levels, a Level-1 employee would still see their basic pay rise to roughly ₹33,000–₹44,000.
Key Dates for February 2026
The next few weeks are critical for these negotiations.
February 12: Employee unions have called for a nationwide strike to pressure the government on these demands.
February 25: The National Council (NC-JCM) will hold a week-long drafting session in New Delhi. They plan to finalize a unified memorandum to present to the Commission Chairperson, Ranjana Prakash Desai.
Because the Commission needs time to review thousands of pages of data, most experts believe the final notification will only arrive in 2027. However, the raises will apply retrospectively from January 1, 2026, meaning employees can expect a massive lump-sum payment in arrears.
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