8th CPC: Employees' Bodies Demand OPS, Fitment Factor Of 3.0, Revised DA Calculation

The formation of the 8th CPC was first announced in January 2025. Its Terms of Reference (ToR) were approved by the Union Cabinet on 28 October 2025

Modi Government, 8th CPC, 7th CPC, Pay Commission, CPC, Central Pay Commission, FNPO, AITUC, OPS

A range of demands have been made by several Central government employees' associations before the 8th Central Pay Commission (CPC), seeking a fitment factor of 3.0, implementation of the Old Pension Scheme (OPS), revising dearness allowance (DA) calculations, boosting leave encashment to 450, and cutting down the commuted pension duration to 11 years. 

The All India Trade Union Congress (AITUC), Federation of National Postal Organisations (FNPO), and the Confederation of Central Government Employees and Workers have made representations to the 8th CPC Chairperson, Justice Rangana Prakash Desai, seeking the incorporation of these demands in its final report. 

These employees' bodies have also sought the implementation of a minimum annual increment of 6%, at least five promotions and better compensation for services such as Railways and defence civil employees. Moreover, the government has been urged to fill around 15 lakh vacant Central government posts through regular recruitment.

3.0 Fitment Factor 

The fitment factor is basically the multiplier for payout revisions of Central government employees and pensioners. This is expected to significantly boost the salaries of Central government employees.

According to the 7th Pay Commission, the annual increment stands at 3% for all 18 employee levels. These organisations have suggested that the annual increment rate should be increased to at least 6%.

A request has also been made to the 8th CPC to increase the family unit count to five, including parents in it. Such a step can significantly increase the basic salary of all employees.

Promotion Reforms 

There is a demand for at least five promotions over an employee’s 30-year career. It has been argued that the current Modified Assured Career Progression (MACP) scheme does not adequately address the problem of stagnation. 

Important Demands

Scrapping OPS: The demand for scrapping the National Pension System (NPS) and Unified Pension Scheme (UPS) and restoring the Old Pension Scheme (OPS), has been reiterated before the 8th Pay Commission.

Pension Increase: A time-bound increase in pension by 5% every five years, as recommended by the Parliamentary Committee, has also been flagged by these bodies in the petition. "Pensioners who commute their salary get a reduced pension for 15 years before it is fully restored. AITUC wants the 8th Pay Commission to cut this duration to 11-12 years," the representation says.  

Leave Encashment: Government employees at the time of retirement can take a maximum leave encashment of 300 days. AITUC has called for higher risk and hardship allowances, cashless medical treatment, 450 days leave encashment, and additional benefits such as menstrual leave and longer paternity leave.

Risk Compensation: Higher compensation for risk and hardship of Railways and defence employees. Employees of Railways, Central Armed Police Forces (CAPF) and defence civilian employees face unique risks, hardships and responsibilities, so their pay and allowances must reflect these realities.

Opposes Agniveer: Demand that recruitment to the armed forces should be permanent and not in the form of Agniveer. Soldiers recruited in the name of Agniveer should be regularised, and their entry pay must be attractive, with clear progression and strong non-monetary benefits like housing, ration and adventure allowances.

Opposition To Contractual Hiring: Contractual employment has been opposed, and an end to outsourcing in different Central government jobs has been sought.

There are an estimated 7.5 million Central government employees in the country, which includes defence personnel, the Railways, and public sector undertakings. Moreover, about 69 lakh pensioners in the country are eagerly awaiting the 8th CPC’s recommendations.

The formation of the 8th CPC was first announced in January 2025, and its ToR were approved by the Union Cabinet on 28 October 2025.  The Commission has been mandated to submit its recommendations within 18 months of its constitution. The recommendations are expected to impact around 50 lakh Central government employees and 69 lakh pensioners.

The Pay Commission is typically constituted once every 10 years to review and recommend changes in the salary structure, allowances, and pensions of government employees.  The 7th CPC was constituted in 2014, and its recommendations were implemented from 1 January 2016.

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