8th Pay Commission fitment factor vs higher annual increment rate: Which may benefit employees earning Rs 35,000 basic pay?

The 8th Pay Commission’s two-day consultation meetings begin in Chennai today (Monday, September 7, 2026). During the meetings, central government employee and pensioner bodies, along with other stakeholders from Tamil Nadu, will discuss issues related to pay, pension, employees’ working conditions, and other services matters with officials of the commission. The Chennai meetings will be followed by discussions in Puducherry on September 9, 2026.

Among all such 8th Pay Commission discussions held in various cities across India, one of the key demands raised by employee and pensioner bodies is an increase in the annual increment rate for central government employees.

What are the recommendations of employee and pensioner bodies to the 8th Pay Commission regarding the annual increment rate?


Employee and pensioner bodies in their memorandums submitted to the 8th Pay Commission have suggested an annual increment rate in the range of 5 to 7% compared to the current rate of 3%. For example, the All India New Pension Scheme Employees’ Federation (AINPSEF) has recommended a 7% annual increment rate under the 8th Pay Commission.

Also Read: 8th Pay Commission pension calculator: Can Level 7 employees get up to Rs 58,000 minimum basic pension after retirement?

Others like the National Council of the Joint Consultative Machinery (NC-JCM), the main central government employee body, the All India Defence Employees Federation (AIDEF) and the Federation of National Postal Organisations (FNPO) have suggested a 6% annual increment rate each. The Indian Railways Technical Supervisors Association (IRTSA) has suggested a 5% increment rate, but it also wants a fitment factor of up to 4.0.

Organisation	Proposed annual increment
National Council of the Joint Consultative Machinery (NC-JCM)	6%
All India Defence Employees' Federation (AIDEF)	6%
Federation of National Postal Organisations (FNPO)	6%
All India New Pension Scheme Employees Federation (AINPSEF)	7%
Indian Railways' Technical Supervisors' Association (IRTSA)	5%

Manjeet Singh Patel, President of AINPSEF, told ET Wealth Online that under the present conditions, when a fitment factor is applied to the salary of an employee in a new commission, the total salary barely doubles in 10 years even after applying the annual increment rate of 3% and dearness allowance (DA).

Also Read: 8th Pay Commission: Can Level 5 employees get up to Rs 15,800/month extra HRA under 8th CPC?

“We are recommending a 7% increment rate, as it can double the salary in just 6-7 years. For low-level employees residing in Tier I cities, such a high increment will help them meet rising expenses,” says Patel.

Employee associations also believe that if the annual increment rate is high, employees don’t have to wait for 10 years to see a substantial raise in their payouts in a new pay commission.

But here, the big question is: can a system exist where employees can depend on a high increment rate, doing away with the fitment factor? Or is a strong salary push in the form of the fitment factor necessary for all employees?

Let’s compare two scenarios: one where employees get a fitment factor of 2.15 with a retained annual increment rate of 3%, and another when they don’t receive the fitment factor benefit, instead depend on annual increment rates of 5%, 7%, or 10%.

Also Read: 8th Pay Commission salary calculator: Can Level 8 employees get Rs 29 lakh extra pay in 10 years at 7% annual increment rate?

• Assumptions for 8th Pay Commission salary estimates
• Basic salary- Rs 30,000-Rs 40,000 (As per 7th Pay Commission)
• 8th Pay Commission’s estimated fitment factor- 2.15
• Increment rates- 3%, 5%, 7% and 10%

What we will calculate-

• Estimated salary when a 2.15 fitment factor is applied and a 3% annual increment rate is retained
• When there is no fitment factor and 8th CPC gives a 5% annual increment rate
• When there is no fitment factor and 8th CPC gives a 7% annual increment rate
• When there is no fitment factor and 8th CPC gives a 10% annual increment rate

Fitment factor vs high increment rate: Salary projections for employees earning Rs 30,000 basic pay

Path	Year 1 basic	Year 5 basic	Year 10 basic
One-time 2.15x revision, then 3%/yr	₹ 66,435	₹ 74,773	₹ 86,683
No revision, 5%/yr increment	₹ 31,500	₹ 38,288	₹ 48,867
No revision, 7%/yr increment	₹ 32,100	₹ 42,077	₹ 59,015
No revision, 10%/yr increment	₹ 33,000	₹ 48,315	₹ 77,812

Fitment factor vs high increment rate: Salary projections for employees earning Rs 30,000 basic pay

Path	Year 1 basic	Year 5 basic	Year 10 basic
One-time 2.15x revision, then 3%/yr	₹ 77,508	₹ 87,235	₹ 1,01,130
No revision, 5%/yr increment	₹ 36,750	₹ 44,670	₹ 57,011
No revision, 7%/yr increment	₹ 37,450	₹ 49,089	₹ 68,850
No revision, 10%/yr increment	₹ 38,500	₹ 56,368	₹ 90,781

Fitment factor vs high increment rate: Salary projections for employees earning Rs 30,000 basic pay

Path	Year 1 basic	Year 5 basic	Year 10 basic
One-time 2.15x revision, then 3%/yr	₹ 88,580	₹ 99,698	₹ 1,15,577
No revision, 5%/yr increment	₹ 42,000	₹ 51,051	₹ 65,156
No revision, 7%/yr increment	₹ 42,800	₹ 56,102	₹ 78,686
No revision, 10%/yr increment	₹ 44,000	₹ 64,420	₹ 1,03,750

However, these are just estimates. Revised salaries of central government employees will be known only after the 8th Pay Commission decides on the fitment factor and the annual increment rate.