Synopsis: This article explains the recommendations put forth by the Federation of National Postal Organisation to the 8th Pay Commission, which is expected to be implemented this year.
With the rumors for 8th Pay Commission looming over, the Federation of National Postal Organisation (FNPO) has raised its recommendations for the 8th Central Pay Commission. This includes two major recommendations- one is to raise the fitment factor to 3.25, and the second is to provide 5% annual increment at all levels.
What is Fitment Factor?
The fitment factor is a multiplier used to revise the basic pay of the central government employees when the new pay structure is implemented by the Pay Commission. It decides how much the current basic pay should rise.
The formula to calculate the new basic pay using the fitment factor is to multiply the current basic pay by the fitment factor. For Example, if your current basic pay is ₹18,000, and the fitment factor is 3.25, then the new basic pay will be ₹58,500.
This shows how drastically your basic can be spiked with the fitment factor. The previous Pay Commission used the fitment factor of 2.57. Therefore it is a huge deal to ask for a 3.25 fitment factor for the 8th Pay Commission.
Suggestions by FNPO
1. FNPO suggested keeping the 7th CPC Pay Matrix as the base instead of building a new pay matrix. It is also recommended to rationalise pay using grouped categories instead of a one-size-fits-all approach. This can be done by categorising employee levels into broad groups and then applying rationalisation within the groups. This move is expected to create a more balanced revision across all levels.
2. Another suggestion by the FNPO is to make the annual increment 5% instead of 3%. These increments might look minor on paper, but over time, with compounding, they can make a huge change in the income earned by an individual.
For example, assume an employee has a basic pay of 18,000 and gets increments for 20 years. With 3% annual increment, the employee would have a basic pay of around 32,000 per month in 20 years, and with an annual increment of 5%, this would rise to 47,700 per month approximately.
This is a difference of about 15,000 in monthly basic pay after 20 years. These suggestions by FNPO are in line with the rising living costs and inflation. These changes also ensure that it connects to employee morale and retention.
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What the experts have to say
Sivaji Vasireddy, Secretary General of FNPO and member of NCJCM, told Economic Times Wealth that on February 25, 2026, NCJCM is set to convene a meeting with the draft committee members.
He told ET that after February 25, 2026, the final draft of recommendations will be sent to Ranjana Prakash Desai, Chairperson of the 8th Pay Commission. This draft will contain the fitment factor, minimum wage, and higher wage, allowances. During the meeting, recommendations from various government employee organisations will be shared.
Conclusion
While the final numbers will only be revealed after the 8th Pay Commission finishes its work and the government decides on its suggestions, demands from FNPO clearly signal what the employee body wants. The next few weeks will therefore be crucial.
Written by Nila Maria Jacob
