FNPO Proposes Multi-Level Fitment Factor of 3.0-3.25 and 5% Annual Increment for 8th Pay Commission

1 min read     Updated on 25 Jan 2026, 01:31 PM
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Overview

FNPO has submitted comprehensive 8th Pay Commission recommendations proposing differentiated fitment factors from 3.0-3.25 across employee levels and replacing the current 3% annual increment with 5%. The National Council will meet on 15 February to consolidate proposals from employee bodies before forwarding recommendations to Commission Chairperson Ranjana Prakash Desai.

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*this image is generated using AI for illustrative purposes only.

The Federation of National Postal Organisation (FNPO) has submitted detailed recommendations for the upcoming 8th Pay Commission, proposing significant changes to the current pay structure for central government employees. The comprehensive 60-page letter, prepared by FNPO Secretary General Sivaji Vasireddy, outlines proposals for multi-level fitment factors, enhanced annual increments, and structural improvements to benefit millions of government employees.

Proposed Fitment Factor Structure

FNPO has recommended a differentiated fitment factor approach, arguing that previous pay commissions failed to apply consistent fitment factors across all employee levels. The organisation has proposed fitment factors ranging from 3.0 to 3.25 based on the Akroyd formula, with higher factors for senior positions:

Employee Level Proposed Fitment Factor
Level 1 to Level 5 3.0
Level 6 to Level 9 3.05
Level 10 to Level 12 3.1
Level 13 to Level 13A 3.05
Level 14 to Level 15 3.15
Level 16 3.2
Level 17 to Level 18 3.25

This graduated approach aims to address inconsistencies in previous pay commission implementations while ensuring equitable treatment across different employee categories.

Annual Increment Enhancement

The FNPO proposal seeks to replace the current 3% annual increment system with a 5% annual increment structure. The organisation argues this enhancement would deliver multiple benefits:

  • Meaningful financial progression for employees
  • Reduced stagnation-related dissatisfaction
  • Alignment of government pay structures with industry standards
  • Particular benefit for Group C and Group D employees who have limited promotion opportunities compared to Group A and B level employees

Implementation Timeline and Process

The National Council (Joint Consultative Machinery, Staff Side) is scheduled to conduct a meeting with draft committee members on 15 February, following receipt of recommendations from various central government employee bodies. After consolidating all proposals, the NCJCM will prepare a final draft for submission to 8th Pay Commission Chairperson Ranjana Prakash Desai.

Continuity of Matrix System

FNPO has recommended maintaining the 7th Pay Commission matrix system, citing its effectiveness in bringing clarity and predictability to pay fixation and progression processes. The organisation's comprehensive proposal also addresses various other aspects including higher pay scales, pay structure modifications, allowances, and promotion policies.

The recommendations represent a coordinated effort by central government employee organisations to secure improved compensation structures that reflect current economic conditions and industry benchmarks.

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8th Pay Commission: DA Growth Slowest Since 5th CPC, What It Means For Future Salary Hike

2 min read     Updated on 13 Jan 2026, 05:23 AM
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Reviewed by
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Overview

Dearness allowance under the 7th Central Pay Commission has grown at the slowest pace since the 5th CPC, reaching only 58% compared to 125% under the 6th CPC. The COVID-19 pandemic's 18-month DA freeze contributed to this slower growth. With the 8th Pay Commission report expected by mid-2027 and DA projected to reach around 70%, the relatively lower DA levels are expected to result in higher effective salary increases when implemented, as demonstrated by the 14.3% effective growth seen during the 7th CPC rollout in 2016.

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*this image is generated using AI for illustrative purposes only.

Dearness allowance growth under the 7th Central Pay Commission (CPC) has recorded its slowest pace since the 5th Pay Commission, a development that could significantly impact salary calculations under the upcoming 8th Pay Commission. The allowance, designed to offset inflation's impact on government employees, currently stands at 58.00% of basic pay and is expected to influence future wage revisions.

Historical DA Growth Comparison

A comparison of DA growth across different pay commissions reveals significant variations in allowance increases over the decades.

Pay Commission: Tenure DA Growth (%)
5th CPC: 1996-2006 74.00%
6th CPC: 2006-2016 125.00%
7th CPC: 2016-Present 58.00%

The 6th CPC recorded the highest DA growth at 125.00% of basic pay during its ten-year tenure, significantly outpacing both the 5th CPC's 74.00% increase and the current 7th CPC's 58.00% growth. With the upcoming March revision, the 7th CPC's DA is expected to rise to approximately 60.00%.

DA Revision Timeline and Projections

Dearness allowance undergoes bi-annual revisions in March and October, with changes taking effect retrospectively from January and July respectively. The 8th Pay Commission, established in November 2025, has been allocated 18 months to submit its recommendations, with the report not expected before mid-2027.

Before the 8th Pay Commission implementation, DA will undergo at least three more revisions:

  • March 2025
  • October 2025
  • March 2027

Considering average increases of 2.00% to 4.00% per revision, cumulative DA is projected to reach approximately 70.00% before the 8th Pay Commission rollout.

Impact of COVID-19 on DA Growth

The slower DA growth under the 7th CPC can be attributed primarily to the 18-month revision freeze during the COVID-19 pandemic. The government suspended periodic DA and dearness relief increases during the health crisis to reduce fiscal burden on the exchequer.

Implications for 8th Pay Commission Salary Calculations

The relatively lower DA growth carries significant implications for salary increases under the 8th Pay Commission, as DA resets to zero whenever a new pay commission is implemented. This reset mechanism means lower current DA levels could result in higher effective wage increases.

7th Pay Commission Implementation Example

The 7th Pay Commission's implementation in 2016 demonstrates this calculation methodology:

End of 6th Pay Commission (2016):

Component: Amount (₹)
Basic Salary: 7,000.00
DA: 8,750.00
House Rent Allowance: 2,100.00
Travel Allowance: 1,350.00
Total: 19,200.00

7th Pay Commission Implementation (2016):

Component: Amount (₹)
Basic Salary: 18,000.00
HRA: 4,320.00
Travel Allowance: 1,350.00
DA: 0.00
Total: 23,670.00

The transition from ₹19,200.00 to ₹23,670.00 represented an effective salary growth of 14.30% for central government employees. The 7th Pay Commission had recommended a fitment factor of 2.57, raising the basic minimum salary from ₹7,000.00 to ₹18,000.00, representing a 157.00% increase in basic pay.

Expected Impact on 8th Pay Commission

With DA currently at less than half the level reached under the 6th Pay Commission, the effective wage increase under the 8th Pay Commission is anticipated to be relatively higher, even with a modest fitment factor recommendation. This lower starting point for DA provides greater scope for meaningful salary increases when the new commission's recommendations are implemented.

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