The possibility of retaining the fitment factor comes amid growing concerns over the fiscal burden on both the Centre and states, sources familiar with the matter said.

The fitment factor, which is used to calculate revised basic pay and pensions by multiplying the existing basic pay, is considered the most critical component of the pay revision exercise. The Commission, chaired by former Supreme Court judge Justice (Retd) Ranjana Prakash Desai, is yet to finalise its recommendations.

According to a senior government official, deliberations are currently focused on identifying an appropriate fitment factor, assessing its financial implications and consulting state governments before arriving at a final recommendation.

“The discussions are centred on the likely range of the fitment factor, consultations with states, and a detailed assessment of the fiscal impact of revised pay and pension structures,” the official said.

Financial Burden

Sources said the potential financial burden on the Centre and state governments is expected to significantly influence the Commission's recommendations, particularly as any substantial increase in salaries and pensions would have long-term implications for public finances.

Employee unions, however, have sought a much steeper revision. In their submissions to the Commission, they have demanded a fitment factor of 3.83, which would raise the minimum basic pay for central government employees to ₹69,000.

The Commission concluded the memorandum submission process on June 15, marking the end of formal representations from employee unions, pensioners and other stakeholders. It will now examine these submissions alongside feedback from state governments.

Next Phase Of Consultations

The next phase of consultations will begin with Uttar Pradesh, Odisha, and West Bengal following earlier stakeholder meetings held in Delhi, Ladakh, Jammu and Kashmir, Telangana, Maharashtra, and several other regions as part of a nationwide outreach exercise.

Once the consultation process is completed, the Commission is expected to consolidate stakeholder feedback before preparing its final report, which will determine the revised pay and pension structure for central government employees and pensioners.

The 7th Pay Commission had recommended a fitment factor of 2.57, increasing the minimum basic pay from ₹7,000 to ₹18,000. The implementation of its recommendations also led to a sharp rise in the Centre’s wage bill, with expenditure on salaries increasing to 9.9% of revenue expenditure in FY2016-17 from 4.8% in the previous fiscal year — a precedent that is likely to weigh heavily on the 8th CPC's deliberations.