8th Pay Commission Update: Big Discussions Begin on Salary Hike, Fitment Factor, Pension and DA Merger
- bySagar
- 20 May, 2026
The wait for the 8th Pay Commission has intensified among lakhs of central government employees and pensioners as major meetings related to salary revisions, pension reforms, fitment factor changes, and Dearness Allowance (DA) merger have officially begun in Hyderabad. Employees across India are closely tracking every development, hoping for substantial salary hikes and improved retirement benefits under the new pay commission system.
According to recent updates, the commission’s consultations with employee unions and pensioners’ associations are now gaining momentum, with multiple rounds of discussions taking place in different cities across the country.
Hyderabad Meetings Raise Employees’ Expectations
The 8th Pay Commission team, led by Justice Ranjana Prakash Desai, is visiting Hyderabad on May 18 and 19 to interact with employee unions, pensioners’ organizations, and representatives from various central government institutions.
During these meetings, officials are discussing several major demands raised by employees and retirees, including:
- Increase in fitment factor
- Minimum basic salary revision
- Pension reforms
- DA merger with basic salary
- Annual increment changes
- Old Pension Scheme (OPS) restoration
The outcome of these discussions could significantly impact the future salary structure of millions of government workers.
Fitment Factor Demand Increased to 3.83
One of the most discussed topics under the 8th Pay Commission is the fitment factor.
Currently, the fitment factor under the 7th Pay Commission stands at 2.57. However, several employee unions are now demanding that it be increased to 3.83.
If approved, this could lead to a major jump in basic salaries for central government employees.
Why the Fitment Factor Matters
The fitment factor is used to calculate revised basic pay under a new pay commission.
A higher fitment factor directly increases:
- Basic salary
- Pension amounts
- Allowances linked to salary
This is why government employees are paying close attention to the ongoing discussions.
Demand to Raise Minimum Basic Salary to ₹69,000
Employee organizations have also reportedly demanded a major increase in minimum basic pay.
Current vs Proposed Salary
- Current minimum basic salary: ₹18,000
- Proposed minimum salary demand: ₹69,000
In addition, unions are seeking an increase in annual salary increments from the current 3% to around 5% or 6%.
Employees argue that rising inflation, higher living expenses, and increased household costs justify the demand for stronger salary revisions.
Pension Reforms and DA Merger Also Under Discussion
Apart from salaries, pension-related reforms are also becoming a key focus area during the consultations.
Several organizations have reportedly raised demands related to:
- Pension parity
- Pension increase
- Restoration of Old Pension Scheme (OPS)
- Merger of Dearness Allowance with basic pay
The demand for DA merger has gained significant attention because it could permanently raise the salary base for future calculations.
Deadline for Memorandum Submission Extended
The commission has extended the deadline for submitting memorandums and recommendations until May 31, 2026.
This extension gives:
- Employee unions
- Pensioners’ groups
- Stakeholders
- Government organizations
additional time to submit suggestions and demands regarding the pay revision structure.
Meetings to Continue Across Multiple States
Before Hyderabad, several rounds of discussions had already taken place in Delhi during April 2026.
Now, the commission is expanding consultations to different parts of the country.
Upcoming consultation meetings are expected to be held in:
- Visakhapatnam
- Srinagar
- Leh
These regional meetings aim to gather broader feedback from employees working in different departments and geographical regions.
Final Report Expected Within 18 Months
According to reports, the 8th Pay Commission has been given approximately 18 months to submit its final recommendations to the central government.
Once the report is submitted, the government will take the final decision regarding:
- Revised salary structure
- Pension revisions
- Allowance changes
- Fitment factor approval
- Implementation timeline
This means employees may still have to wait before official implementation begins.
Employees Await Major Financial Relief
More than six months have reportedly passed since the formation of the commission, and expectations among employees continue rising steadily.
With inflation and household expenses increasing sharply, many central government employees and pensioners are viewing the upcoming pay revision not merely as a salary hike, but as a crucial financial relief measure.
The biggest question now remains:
When Will the New Salary Structure Be Implemented?
Although no official implementation date has been announced yet, the ongoing nationwide consultations indicate that the process is moving actively toward final recommendations.
For now, millions of employees and pensioners across India continue waiting for clarity regarding salary hikes, pension revisions, and other financial benefits under the 8th Pay Commission.






