The 8th central pay commission (CPC) is in its consultation stage as it has closed submission for suggestions and data from employee representative groups, unions and other stakeholders as of July.

Notably, Centre has also for the first time clarified its position on the much-debated fitment factor under the 8th Central Pay Commission.

CPC has also sought inputs from labour representatives and groups, ministries, pension bodies, central government organisations/institutions, employee unions/associations, and other similar stakeholders.

Further, this data will be analysed and then used to decide pay, allowances, pension, and salary for central government employees and pensioners.

Earlier, while responding to a question in Parliament, the government said that the Commission functions independently and is not required to keep the Centre informed about its internal discussions, consultations, or the recommendations currently under consideration.

The clarification came in a written reply by Minister of State for Finance Pankaj Chaudhary in the Rajya Sabha, providing fresh insight into how the Commission is carrying out its work amid growing demands from central government employee unions for a higher fitment factor and revised salary structure.

The panel is expected to announce its decisions by mid-2027 with over 1 crore beneficiaries including around 50 lakh employees and about 65 lakh pensioners are looking forward to a hike in dearness allowance (DA), dearness relief (DR) and fitment factor.

Notably, the fitment factor is one of the most significant components of every Central Pay Commission. It determines the revision in the basic pay of central government employees.

Further, the multiplier also influences pension calculations and several retirement-related benefits.

Employee organisations have consistently pushed for a higher fitment factor than the one recommended by the 7th Pay Commission. While several unions have demanded a fitment factor of 3.68, others have proposed a range between 3.0 and 3.5.

The conservative estimate is for a 20-30% salary hike in the 8th CPC, the moderate estimate is for a 30-50 salary hike in the 8th CPC.

Further, the high-end estimate, takes into account highest recommended fitment factor over 80% salary hike in the 8th CPC.