8th Pay Commission: Uniform Fitment Factor May Bring Biggest Salary Restructuring in 68 Years – IAS to Peon, Everyone to Benefit Equally

The long-anticipated 8th Pay Commission may usher in a revolutionary change in how government salaries are calculated in India. For the first time in nearly seven decades, there’s a serious proposal on the table to introduce a uniform fitment factor—a change that could dramatically narrow the salary gap between high-ranking officials like IAS officers and lower-tier staff like peons.

🔍 What Is the Fitment Factor & Why It Matters

The fitment factor is a multiplier used to revise an employee’s basic salary under new pay commission recommendations. This factor accounts for inflation, cost of living, and other economic variables, and is applied to the existing basic pay to arrive at the revised salary.

• In the 7th Pay Commission, this fitment factor was not uniform:

  • Pay Band 1: 2.57

  • Pay Band 2–4: 2.62 to 2.72

  • The higher the pay band, the greater the factor—reflecting more responsibility at higher levels.

However, this also increased the disparity between the minimum and maximum pay over time.

⚖️ Unions Push for Equal Multipliers

Now, employee unions, particularly the National Council (Staff Side), Joint Consultative Machinery (NC-JCM), are demanding a uniform fitment factor for all employees—across pay levels from Grade 1 to Grade 4.

Shiv Gopal Mishra, Secretary of NC-JCM, told NDTV:
“Whether it's Pay Band 1 or Pay Band 4, the fitment factor should be the same. This is essential to reduce income inequality within government services.”

This move could flatten the salary pyramid, making raises more equitable across ranks.

🏛️ Historical Significance: Biggest Restructuring Since 1957

If approved, this would mark the biggest structural change in salary formulation since the 1957 Indian Labour Conference (ILC) norms, which introduced the modern fitment model.

📊 Current Basic Salary (As per 7th Pay Commission): Sample Matrix Pay Level Minimum Basic Pay (₹) Fitment Factor (7th CPC)

Level 1	18,000	2.57
Level 4	25,500	2.62
Level 6	35,400	2.67
Level 10	56,100	2.72

If a uniform fitment factor (e.g. 3.0) is applied:

• Level 1 salary may jump from ₹18,000 to ₹54,000.

• Level 10 could also rise, but not disproportionately.

This would compress the wage gap and offer relief to lower-earning government staff.

🔧 Other Proposed Changes: Merging of Pay Levels

The NC-JCM has also recommended merging:

• Level 1 with Level 2

• Level 3 with Level 4

• Level 5 with Level 6

This would eliminate pay stagnation and improve career progression opportunities, especially for mid- and lower-level staff.

🔎 Why the Change Now?

Salary Inequality: The existing system has led to widening wage gaps across ranks.

Career Stagnation: Lower bands often face slow or negligible hikes.

Economic Fairness: A unified approach reflects a more equitable pay structure in a democracy.

Precedent & Pressure: Growing pressure from unions and a push toward worker-centric policies in a pre-election climate.

📅 What Happens Next?

• The formation of the 8th Pay Commission was greenlit in February 2025.

• The recommendations are expected to roll out by late 2025 or early 2026.

• If accepted, the uniform fitment factor could apply retroactively from January 1, 2026.

✅ Bottom Line

A uniform fitment factor, if approved, could:

• Lead to historic salary parity across roles.

• Boost morale among lower-tier employees.

• Reduce bureaucratic wage inequality that has persisted for decades.