New Delhi: The Central Government has addressed the issue of the fitment factor for the 8th Central Pay Commission in Parliament for the first time. While the government has not responded to the specific demands of employee unions, it has clarified that the Commission is independent and the government is not being apprised of its internal deliberations.
In response to a question in the Rajya Sabha, Minister of State for Finance Pankaj Chaudhary stated that the government had issued a notification on November 3, 2025, regarding the constitution and terms of reference of the 8th Central Pay Commission. He clarified that “the resolution dated November 3, 2025, states that the 8th Central Pay Commission will devise its own procedure.”
What the Government Said Regarding the ‘Family Unit’
Rajya Sabha MP Javed Ali Khan had asked whether employee unions had demanded an increase in the ‘family unit’ size—used for calculating the fitment factor—from three to five members, to include the employees’ parents. He also sought information regarding the Commission’s meetings, consultations with employee unions, and the government’s response to these demands.
The Minister clarified that “the terms of reference of the Commission do not contain a provision requiring the Commission to keep the government updated on its progress, the nature of recommendations under consideration, or the consultation process during its deliberations.” Consequently, the government has no information regarding the number of meetings held by the Commission, which employee unions have been consulted so far, or whether such demands have been discussed.
Why is the Fitment Factor So Important?
The fitment factor is the multiplier used to revise the basic salary of central government employees when implementing the recommendations of a new pay commission. It is the most discussed aspect of any pay commission, as it directly impacts salaries, pensions, and retirement benefits.
Employee Unions Demand a Fitment Factor of 3.68
Since the announcement of the 8th Pay Commission, employee organisations have been demanding a fitment factor significantly higher than that of the 7th Pay Commission. Several employee unions have demanded a fitment factor of 3.68, while others have suggested a range between 3.0 and 3.5.
Some organisations have also demanded that five family units—instead of three—be considered when determining the minimum wage and fitment factor, arguing that household expenses have changed significantly over the past few years.
When will the 8th Pay Commission submit its report?
The government provided a clear response regarding the timeline. According to the Ministry of Finance, the resolution constituting the 8th Central Pay Commission stipulates that the Commission must submit its recommendations within 18 months of its formation. Since the Commission was constituted via a resolution dated November 3, 2025, its report is expected by mid-2027; subsequently, the Central Government will examine the recommendations and make a final decision on their implementation.
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