8th Pay Commission: Employees seek 5% annual increment, OPS and 3.25 fitment factor; Know what it means
Babushahi Bureau
Chandigarh, September 21, 2026: Demands for higher salaries, better allowances and restoration of the Old Pension Scheme (OPS) have been placed before the 8th Central Pay Commission during its recent consultations with employee organisations and unions in Chandigarh.
Among the key demands raised by employee representatives were a 3.25 fitment factor, a 5% annual increment, higher entry-level pay for certain categories of employees and restoration of the Old Pension Scheme.
Representatives from the Nursing Welfare Association (NWA) and nursing staff of the Postgraduate Institute of Medical Education and Research (PGIMER), Chandigarh, were among those who presented their demands before the Pay Commission.
What is the 3.25 fitment factor?
The fitment factor is used to calculate revised basic pay when a new Pay Commission recommends a new pay structure.
Employee organisations have sought a 3.25 fitment factor, which is higher than the 2.57 fitment factor adopted under the 7th Central Pay Commission.
A higher fitment factor would mean a larger multiplication of the existing basic pay while determining revised pay. However, the demand has not been approved by the government or the Pay Commission at this stage.
5% annual increment among key demands
Employee representatives have also sought an increase in the annual increment from the existing 3% to 5%.
The demand is aimed at providing employees with faster growth in basic pay during their service.
Other demands raised by nursing representatives included revisions in night-duty, risk and hardship allowances, along with increases in nursing, dress and special allowances.
Demand for higher entry-level pay
Nursing representatives have sought Level 10 entry pay for nursing officers, along with changes in other service-related benefits.
The demands also included provisions related to term and health insurance for employees.
OPS restoration sought
Restoration of the Old Pension Scheme (OPS) was another major demand raised during the consultations.
Employee organisations have been seeking a return to the defined-benefit pension system, as opposed to the contributory pension arrangements applicable to employees covered under the newer system.
Chandigarh-related demands
The nursing representatives also raised demands concerning the classification of Chandigarh for certain allowances, including House Rent Allowance (HRA) and Transport Allowance (TA).
The demands form part of the broader submissions being made by employee organisations before the 8th Central Pay Commission.
The Pay Commission’s consultation process with employees and other stakeholders is continuing. The next stakeholder meeting is scheduled to be held in Bengaluru on October 7 and 8, where further representations are expected to be considered.
The demands being submitted by employee organisations should not be confused with final recommendations. The 8th Central Pay Commission will have to consider the representations before making its recommendations, after which the government will take a decision on their implementation.