New Delhi, June 20: The Eighth Central Pay Commission has concluded the memorandum submission process on June 15 and is now preparing to assess key demands raised by central government employees and pensioners before drafting its final recommendations.
Established after the Centre approved its Terms of Reference in October 2025, the commission is expected to submit its recommendations within the next 10 months. The panel is tasked with reviewing salaries, pensions, and allowances for nearly 55 lakh central government employees and around 69 lakh pensioners.
Employee unions and staff associations have strongly advocated for a higher fitment factor and a significant increase in the minimum basic salary. Several organisations have also called for the reinstatement of the Old Pension Scheme (OPS) to replace the existing National Pension System (NPS).
Apart from salary revisions, unions have sought enhancements in various benefits, including House Rent Allowance (HRA), risk allowances, bonuses, leave-related benefits, and post-retirement entitlements.
Earlier this year, the Centre approved a 2 per cent increase in Dearness Allowance (DA) and Dearness Relief (DR), raising the total rate to 60 per cent. DA revisions are announced twice annually, with the next revision, effective from July 2026, expected to be declared around September.
The upcoming DA adjustment will be based on the All India Consumer Price Index for Industrial Workers (AICPI-IW) data for May and June 2026.
As part of its outreach programme, the 8th Pay Commission has already held consultations in Delhi, Ladakh, Jammu & Kashmir, Telangana, Hyderabad, and Maharashtra. It also conducted its first interaction with employee representatives in Uttarakhand. Additional consultations are planned in Lucknow, Bhubaneswar, and Kolkata through July.
A key factor influencing the eventual salary revision will be the fitment factor, a multiplier used to calculate revised pay by accounting for inflation and rising living costs. While analysts expect the government to adopt a fitment factor exceeding 2.5, some employee organisations have urged the commission to recommend a factor of 3.15.
The commission's recommendations are expected to have a major impact on the financial well-being of millions of serving employees and pensioners across the country.
