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[BUSINESS] · India · 7 sources

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8th Pay Commission holds consultations on salary and pension demands

The 8th Pay Commission, chaired by Justice Ranjana Prakash Desai, is conducting stakeholder consultations across India to discuss salary revisions and pension structures for central government employees. Following meetings in Puducherry and Chandigarh, the Commission is scheduled to meet in Bengaluru on October 7–8, 2026, and in Mumbai on October 22–23, 2026. The Commission is expected to submit its final report to the government by May or June 2027.

Key demands from various employee unions include the restoration of the Old Pension Scheme (OPS) to replace the current National Pension System (NPS), a significant increase in the fitment factor, and the merger of Dearness Allowance (DA) into basic pay. The All India Defence Employees Federation (AIDEF) has specifically proposed a 3.83 fitment factor and a minimum monthly salary of Rs 69,000, citing the need to account for larger family units including dependent parents.

Discussions regarding the fitment factor remain a central point of interest. While some estimates suggest a factor of 2.57 could increase basic pay significantly, experts note that the total gross salary increase may be lower once DA is merged and other allowances are adjusted. Other demands include annual increments of at least 6% to combat inflation and revisions to House Rent Allowance (HRA).

Entities

8th Central Pay Commission · 8th Pay Commission · All India Defence Employees Federation · Bengaluru · Federation of National Postal Organizations · Government of India · India · Justice Ranjana Prakash Desai · Ministerial Staff Association · Ministry of Finance · Mumbai · Pankaj Jain

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