India's 8th Pay Commission to overhaul central government salaries

The 8th Central Pay Commission, constituted on 3 November 2025 with an 18‑month mandate, is reviewing pay, pension and allowance structures for roughly 12 million central government employees and pensioners. Stakeholder consultations have been held in Bhubaneswar and Kolkata, with a data‑submission deadline of 31 July. The commission is expected to submit its final report by mid‑2027, and the government has indicated that any approved pay matrix would take effect from 1 January 2026.

Proposals from employee unions include merging several pay‑matrix levels, raising the fitment factor to 3.83 – which could lift the minimum basic salary from ₹18,000 to about ₹69,000 – and increasing the annual increment from 3 % to 6 %. Other suggested changes involve adjustments to house‑rent allowance and other service benefits. These measures remain under consideration until the government reviews the commission’s recommendations and issues a formal resolution.