8th Pay Commission: 3.25 fitment factor and 7% annual increment, what top central government employee bodies want from government

A fitment factor of 3.25, 7% annual increment and a rise in encashed leave from 300 to 400 at retirement are among the demands related to the 8th Pay Commission that will be discussed by leading central government employee and pensioner organisations. They are set to attend the National Council (Staff Side), Joint Consultative Machinery (NC-JCM) meeting in the Capital on Wednesday (February 25, 2026).

These topics will be addressed during the drafting committee meeting of NC (Staff side)-JCM, where top employee and pensioner bodies will prepare a common memorandum for their 8th Pay Commission-related suggestions.

The committee, headed by Shiva Gopal Mishra, will send the memorandum to the 8th Pay Commission chairperson Justice Ranjana Prakash Desai.


“The drafting committee members will be required to stay for a week in Delhi from February 25, 2026, onward for discussing and finalising our proposals on each topic/issue,” Mishra wrote in a letter to drafting committee members early this month.

Let's check out what these organisations are going to discuss in the meeting on Wednesday.

Manjeet Singh Patel, who will represent the Central Government Employees’ Confederation in the February 25 meeting, told ET Wealth Online, that some of the suggestions that he will give to the drafting committee are-

• Apply a 3.2 fitment factor
• Give biannual increment or 7% annual increment from the current rate of 3%
• Increase family units from 3 to 5 for basic salary and fitment factor calculation
• Increase leave encashment at retirement from 300 to 400
• Increase fixed medical allowance from Rs 1,000 to Rs 20,000/month for places without a CGHS hospital
• Maintain gap between salaries of different levels of employees
• Establish a streamlined promotion policy across departments
• Provide leave trave concession (LTC) in the form of cash

"If family units are increased to 5, the basic salary will increase by 66%. We are demanding a better promotion policy as in some departments employees get promotions in a few years, while in others, there is no promotion even in 15 years," Patel told ET Wealth Online.

"We also want LTC in cash form as there are many employees who can't travel by a bus, train or aeroplane because the nature of their job doesn't allow them to book tickets well in advance," says Patel.

Patel says for places where employees don't have a Central Government Health Scheme (CGHS) hospital, a Rs 1,000 fixed amount a month is too less, specially if they have some serious disease.

Defence employee body’s recommendations for February 25 meeting

C Srikumar, general secretary of the All India Defence Employees' Federation, says some of the recommendations from his side for the February 25 meeting are as follows-

• Family unit should be increased from 3 to 5 by including parents for fixing minimum pay
• 10% additional element should be added for meeting technical need elements like internet connection, etc.
• Many left out food items to be included
• 5 guaranteed promotions on a timescale basis in a span of 30 years.
• Scrapping of National Pension System (NPS) and Unified Pension Scheme (UPS) and restore Old Pension Scheme (OPS)
• Children Educational Allowance up to post graduation and professional courses

Postal employee body’s recommendations for February 25, 2026 meeting

In January 2026, the Federation of National Postal Organisation (FNPO) sent a letter to the NC-JCM, outlining its recommendations for the 8th Pay Commission. A key highlight in the FNPO letter was the proposed multi-level fitment factor, which ranged from 3.0 to 3.25, applicable to Group A, B, C and D postal employees. Its main recommendations were-

• Fitment factors from 3.0 to 3.25
• 5% annual increment
• Ensure visible and meaningful financial progression
• To retain the 7th Pay Commission pay matrix
• Bring government pay structures closer to those prevailing in other organised sectors