India's 8th Pay Commission reviews salary and pension reforms

India’s 8th Central Pay Commission is progressing through its consultation phase, with upcoming meetings scheduled for Bengaluru and Mumbai. The commission, which was formed in November 2025, has an 18-month window to submit its recommendations, potentially by mid-2027. Its decisions are expected to impact over 1 crore people, including approximately 50 lakh central government employees and 65 lakh pensioners.

A key point of discussion is the fitment factor, which converts current basic salaries into revised pay. If the commission adopts a factor of 2.57—similar to the 7th Pay Commission—it could significantly increase basic pay, though the actual rise in take-home income may vary due to the absorption of dearness allowances and other fiscal adjustments.

Civilian pensioners are also advocating for a ‘One Rank, One Pension’ (OROP) system to ensure pay equality among retirees of the same rank. Additionally, employees are monitoring potential arrears that may be owed if the new salary structure is implemented with a retroactive effective date.