The 8th Pay Commission's Puducherry consultation concluded on September 9, 2026, with the next meetings scheduled in Chandigarh on September 16-18, 2026. Since its constitution on November 3, 2025, the Commission has held several meetings across different cities including Delhi, Ladakh, Uttar Pradesh, West Bengal, Odisha, and Chennai. During these consultations, employee grievances related to salary revisions, fitment factor decisions, employee morale, pension reforms and the merger of the Dearness Allowance (DA) with basic pay have been highlighted by prominent employee unions and stakeholders. The application deadline for Chennai was set for August 18, 2026, with only eligible employee unions and associations who submitted appointments by this deadline being allotted slots for these meetings. As per Mint, the Commission is now at the business end of its consultation process, with more than 10 months already elapsed from its constitution, giving it approximately 7 months remaining to complete its mandate.
Employee and pensioner unions have urged the 8th Pay Commission to merge DA with basic pay once DA crosses 25% of basic pay, which could significantly accelerate salary growth for central government employees. According to the All India National Pension System Employees Federation (AINPSEF), such a merger will help achieve salary increases more quickly and employees will not need to wait for 10 years for reasonable hikes. The National Council - Joint Consultative Machinery (NC-JCM) has submitted a demand to merge DA with basic pay at specified thresholds, with similar proposals from other prominent unions. Under the current system, DA is revised twice a year but is not automatically merged with basic pay. The merger would help employees receive constructive salary increases sooner, particularly those facing rising living costs in major cities.
Employee organisations are pushing for significantly higher annual increments during the Chennai consultation, with several bodies seeking an increase from the existing 3% to between 5% and 7%. The National Council of the Joint Consultative Machinery (NC-JCM) has proposed a 6% annual increment, while the All India New Pension Scheme Employees' Federation (AINPSEF) has specifically recommended a 7% annual increment rate. These demands raise the crucial question of whether faster yearly salary growth can compensate for a relatively modest fitment factor under the new pay commission. The Indian Railways' Technical Supervisors' Association has proposed 5% along with a fitment factor of up to 4.0%. The Railway Senior Citizens' Welfare Society (RSCWS) has also flagged concerns about the 10-year gap between financial upgradations, suggesting a shorter interval of 5 years or more flexible mechanism to address extended stagnation.
The fitment factor is the critical number used to calculate an employee's new basic pay under a new pay structure, with the existing basic pay multiplied by this factor to determine their new salary chart position. The 7th Pay Commission applied a 2.57 fitment factor for all employees when it came into effect on January 1, 2016, raising minimum pay from ₹7,000 to ₹18,000 per month. For example, an employee with basic pay of ₹18,100 under the 6th Pay Commission would have their new basic pay calculated as ₹46,200 after multiplying by the 2.57 factor. The 6th Pay Commission had used a lower factor of 1.86 before the 7th Pay Commission's implementation. However, a 2.57 fitment factor doesn't mean a 2.57 times salary hike, as it only determines new basic pay while allowances and pensions often rise by more than basic pay.
Illustrative calculations reveal how the proposed DA merger could dramatically impact employee compensation. For a Level 6 employee with existing pay of ₹35,400 under the 7th Pay Commission, assuming a fitment factor of 2.1, the revised basic pay under the 8th Pay Commission would be ₹74,340. With a 7% annual increment and average DA increase of 4%, the employee's basic pay is estimated to reach ₹1,19,374 by January 1, 2033. At an assumed DA rate of 28% in 2033, the DA amount would be ₹33,425, bringing the estimated gross salary to ₹1,52,798. The example demonstrates how the employee's estimated gross salary would be more than double the assumed revised basic pay of ₹74,340 in January 2026, showing how basic salary might double in seven years under the proposed scenario. These calculations are illustrative and do not represent approved salary structures, as the 8th Pay Commission is currently in its consultation phase.
Multiple employee bodies are pushing for comprehensive reforms to the Modified Assured Career Progression (MACP) scheme, which currently provides only three financial upgradations at intervals of 10, 20, and 30 years of service. The Ministerial Staff Association (MSA) has demanded 5 financial upgradations at ages 8, 15, 22, 28, and 32 years, emphasizing that MACP follows the pay scale of the next promotional post rather than merely the next pay-matrix level. As an example, an employee serving in Level 7 may receive MACP to Level 8 even when the next promotional post or positions are in Level 10. The Federation of National Postal Organisations (FNPO) has proposed 5 upgradations at 6, 12, 18, 24, and 30 years, arguing that refusal of promotion should not deny or result in the postponement of MACP benefits as both aspects are distinct. The National Council-JCM Staff Side has demanded five financial advancements in a 30-year career, with the FNPO's memorandum aligning with the NC-JCM Staff Side's common demand for a minimum of five financial advancements in a 30-year career. The Railway Senior Citizens' Welfare Society (RSCWS) has suggested a shorter interval of 5 years or more flexible mechanism to address the human cost of the current 10-year gap, with such stagnation having the potential to hamper employees' morale, confidence and aspirations.
