The 8th Pay Commission is continuing its consultations with central government employees, pensioners and various employee organisations across different parts of the country. Representatives have been putting forward several demands related to Dearness Allowance (DA), House Rent Allowance (HRA), fitment factor and annual salary increments.
The commission held meetings in Chennai on September 7 and 8 before travelling to Puducherry for discussions with pensioners’ and employees’ organisations. It is also scheduled to hold meetings in Chandigarh from August 16 to 18.
Employee groups have been using these consultations to press for changes that could significantly influence the salary structure of central government employees under the 8th Pay Commission.
Here are some of the major demands being raised by employee organisations.
1. Demand for a Fourfold Increase in Dearness Allowance
Some employee associations are seeking a substantial increase in Dearness Allowance (DA) under the 8th Pay Commission.
At present, central government employees receive DA revisions twice a year, generally in January and July. Employee representatives are demanding a much higher DA structure to provide greater relief against rising living costs.
The demand for a fourfold increase is among the proposals being discussed by employee groups during their consultations with the commission.
2. Proposal to Merge 25% DA With Basic Pay
Another major demand relates to the merger of DA with basic salary.
The National Council-Joint Consultative Machinery (NC-JCM), the All India Defence Employees Federation and the All India News Pension Scheme Employees Federation have reportedly raised the issue before the Pay Commission.
Their proposal is that once DA reaches 25%, it should be merged with the basic pay.
At present, DA is not automatically merged with basic salary at any particular stage. The current DA rate mentioned in the proposal is 62%.
A merger of DA with basic pay would have a wider impact on the overall salary structure because several other salary components are linked to basic pay.
3. Basic Pay Merger at 50% DA
Some organisations have also called for a merger of DA with basic pay once the allowance reaches 50%.
The Indian Railway Supervisors Association and the Progressive Teachers Justice Forum are among the groups seeking this change.
According to the demand, reaching the 50% DA threshold should trigger the merger of the allowance with basic salary.
4. Higher Annual Salary Increment Demanded
Annual increments are another important issue being raised by employee organisations.
The NC-JCM and the National Federation of Postal Employees have sought an annual salary increment of 6%.
Meanwhile, the All India New Pension Scheme Employees Federation has demanded an even higher annual increase of 7%.
If accepted, such a revision could affect the pace at which employees’ basic salaries increase over their careers.
5. Higher Fitment Factor and Increase in Family Unit
A higher fitment factor remains one of the most significant demands being made by employee groups.
Several organisations are seeking an increase in the fitment factor, with some proposals suggesting a figure of around 3.84.
The fitment factor is particularly important because it is used to determine the revised basic pay under a new Pay Commission.
For example, if a fitment factor of 4.0 were approved, an employee currently receiving a Level 1 basic salary of Rs 18,000 could see the basic pay rise to approximately Rs 72,000.
However, this is only an illustrative calculation. The final fitment factor and revised pay structure will depend on the recommendations of the 8th Pay Commission and the government’s approval.
Employee organisations have also requested an increase in the family unit from three to five, which could have implications for certain benefits and allowances.
Why Is the Fitment Factor Important?
The fitment factor is a key component of any Pay Commission salary revision because it determines how the existing basic pay is converted into the revised basic salary.
For example:
Current Basic Pay × Fitment Factor = Estimated Revised Basic Pay
Therefore, a higher fitment factor could result in a considerably larger increase in basic pay.
For a Level 1 employee with a current basic salary of Rs 18,000, a fitment factor of 4 would result in an estimated revised basic pay of Rs 72,000.
The actual salary received by an employee, however, would also depend on other components such as DA, HRA, transport allowance and other applicable benefits.
8th Pay Commission: What Employees Are Expecting
The demands being submitted by employee organisations cover several areas of the salary structure, including:
- Higher Dearness Allowance
- Merger of DA with basic pay at specified thresholds
- Higher annual increments
- Increased fitment factor
- Higher HRA
- Expansion of the family unit from 3 to 5
- Better overall salary and allowance structure
The commission’s consultations with employees and pensioners are intended to gather these demands before it prepares its recommendations.
When Will the Final 8th Pay Commission Salary Structure Be Known?
The 8th Pay Commission was constituted in November 2025. Its final recommendations will determine the proposed changes to the pay structure, allowances and other benefits.
However, none of the demands mentioned above should be considered approved at this stage. The final fitment factor, DA structure, increment rate and other salary-related changes will become clear only after the commission submits its recommendations and the Central Government takes a final decision.
For now, employees and pensioners will have to wait for the commission’s final report to know how much their salaries and benefits could actually change.