The decisions of the 8th Departmental Commission Council will determine the size of salary and pension increases for civil servants. The commission reviews numerous requirements concerning changes in the salary structure, increases in the basic rate, and the fitment factor. In this regard, representatives of the National Council-Joint Consultative Machinery (NC-JCM) union have demanded that the minimum basic rate be set at 69,000 rupees.
This demand is based on the use of a fitment factor of 3.833. However, it should be emphasized that this is currently only a proposal from the workers, not a sum approved by the government. Employees awaiting recommendations from the 8th Departmental Commission Council need to understand the difference between the basic rate, grade plan, pay level, and fitment factor, as they directly influence salary calculation and potential changes.
Labor organizations insist on raising the minimum basic rate to 69,000 rupees within the 8th Departmental Commission Council, proposing the use of a fitment factor of 3.833. The fitment factor is a multiplier applied when calculating the adjustment to the existing basic rate. Previously, the sixth Departmental Commission Council approved a factor of 1.86, and the seventh approved 2.57.
This time, the unions are demanding a higher multiplier to improve the financial situation of employees and pensioners amid rising inflation. Nevertheless, it must be understood that the 3.833 factor and the minimum basic rate of 69,000 rupees are currently only demands, not a final government decision. The final salary calculation will depend on the commission's recommendations, government approval, and prevailing rules.
The basic rate, or primary salary, constitutes the central part of a civil servant's income. It does not include allowances such as Dearness Allowance (DA) and House Rent Allowance (HRA). These allowances are usually calculated based on the basic rate. For example, the amount of the Dearness Allowance is determined based on the employee's basic rate. The House Rent Allowance is set according to current rules and the category of the corresponding city. Consequently, a change in the basic rate can affect the employee's total salary. The basic rate varies depending on the pay level and the employee's salary structure.
The grade plan system was introduced during the sixth Departmental Commission Council. It was used to reflect the employee's position and seniority within a defined pay group. Thus, it helped understand the employee's standing within the salary structure. However, the seventh Departmental Commission Council abolished the old grade plan system, implementing a pay matrix. This simplified the representation of pay levels and annual salary increases in an organized system. Therefore, when studying the current pay system, it is important to pay attention to the pay level and the pay matrix, not just the grade plan.
The seventh Departmental Commission Council introduced a pay matrix consisting of 18 levels. The pay level indicates the employee's status in terms of their salary plan. Each level has various basic rate steps, which allow understanding salary increases and progression to the next level. According to the seventh Departmental Commission Council's system, the starting basic rate for Level 1 is 18,000 rupees, while for Level 7 it is 44,900 rupees. Simply put, the pay level shows where the employee is on the pay matrix, and the basic rate is their current primary salary amount at that level. The 8th Departmental Commission Council may present recommendations for changes to this structure.
Employees' interest in the fitment factor stems from its use in calculating the adjusted basic rate. If the commission and the government approve any fitment factor, it will play a key role in determining the new basic rate based on the existing one. However, it is impossible to give an accurate assessment of the total salary based solely on the fitment factor. The total salary will also depend on the new pay matrix, allowances, prevailing rules, and other decisions. Similarly, an assessment of pension changes will only be possible after final government recommendations and decisions. Therefore, any salary forecasts based on the 3.833 factor or the 69,000 rupee basic rate should currently be considered only as a hypothesis or a demand.
The meeting of the 8th Departmental Commission Council is scheduled for October 23, 2026, in Mumbai. This is the second important meeting of the commission in October. Prior to this, a meeting was held on October 8 in Bangalore. During discussions in various states and dependent territories, union employees and other interested parties raised issues related to the basic rate, pay level, fitment factor, pension reforms, and allowances. The formation of the 8th Departmental Commission Council took place on November 3, 2025.