India's 8th Pay Commission proposes salary, pension and HRA changes for central employees

The 8th Central Pay Commission, chaired by retired Justice Ranjana Prakash Desai, has completed regional consultations in Kolkata and Bhubaneswar and is preparing recommendations that would be applied retrospectively from 1 January 2026. The commission is expected to set a new fitment factor between 1.92x and 2.28x (with an optimistic 2.57x scenario), which would raise the minimum basic pay for central staff from the current ₹18,000 to roughly ₹34,560‑₹46,260. Employees could receive a one‑time arrears payment covering about 15‑18 months.

Because HRA is calculated as a percentage of basic pay, the increase in basic salary will automatically boost the housing allowance for city‑category X, Y and Z locations. The pension minimum, currently ₹9,000 per month, could rise to between ₹17,280 and ₹20,520, while travel and medical allowances are projected to grow 20‑30%. An online calculator has been released to let staff estimate the impact on their salaries and allowances.