India's 8th Pay Commission to benefit over 10 million central employees and pensioners

The Union Cabinet approved the Terms of Reference for the 8th Pay Commission, a temporary body chaired by former Supreme Court judge Justice Ranjana Prakash Desai. The commission, set up in November 2025, has an 18‑month deadline and is expected to submit its final report by mid‑2027.

Its mandate covers salary structure, Dearness Allowance, House Rent Allowance, pension revisions, performance‑linked incentives and the review of the National and Unified Pension Schemes. Unions and employee organisations have urged a higher fitment factor (up to 3.83), a rise in HRA and the restoration of the Old Pension Scheme. So far the commission has held nine regional consultation rounds, the latest in Kolkata on 9‑10 July 2026.

If the commission’s recommendations are adopted, they will directly affect roughly 5 million central government employees and about 7 million pensioners – more than 10 million people across defence, railways and other central departments.