Pay Commission

Review process begins for recommendations to made for 12 mn central government workers and pensioners

A clear and simple explainer answering the most common questions about the 8th Central Pay Commission, from salary hikes and DA increases, to fitment factor, arrears, allowances and timelines.

As the 8th Pay Commission begins work, here is how it will review salaries, allowances and pensions, and why its recommendations could reshape government finances and employee welfare

It will always be hard for the government to follow market mechanisms, but systems must be adjusted to reflect the broader economic reality

Panel to review pay, allowances and pensions for 1 crore employees; report expected in 18 months

The Union Cabinet approved the terms of reference for the 8th Central Pay Commission and cleared new nutrient-based subsidy rates for fertilisers for the Rabi 2025-26 season

Payout with sizeable arrears will hit core inflation harder, as it propels demand for goods and services overtime, and leads to an instantaneous reset of housing rents

QuantEco Research says delayed 8th CPC payouts with arrears could fuel inflation, tilt growth balance and push RBI to resume rate hikes in late FY27 or early FY28

One of the prominent demands from staff representatives, as reported by this newspaper recently, is to increase the 'standard consumption norm' from 3 to 3.6 units

The government has sought inputs from major stakeholders, including the Defence and Home ministries, the Department of Personnel and Training, as well as states, on setting up the 8th Central Pay Commission, Parliament was informed on Monday. In January, the Cabinet approved setting up the 8th Pay Commission to revise salaries of nearly 50 lakh central government employees and allowances of about 65 lakh pensioners. To a question on the reasons for not setting up the Commission even after six months, Minister of Finance Pankaj Chaudhary said: "Inputs have been sought from major stakeholders, including Ministry of Defence, Ministry of Home Affairs, Department of Personnel & Training and from States". The Chairperson and members of the 8th CPC will be appointed once the 8th Central Pay Commission is notified by the government, Chaudhary said in a written reply to the Lok Sabha. Asked when the revised pay scales will be implemented for the employees and pensioners, Chaudhary said: ...

Discretionary segments, he believes, may rebound as interest rates fall, rural incomes improve, and the government steps in with measures such as tax cuts and the Eighth Pay Commission

The Cabinet in January cleared a proposal to constitute the 8th Pay Commission

The much-awaited 8th Pay Commission is expected to be constituted next month. It will likely bring a salary hike of 14–19 per cent for central government employees. Watch the video to know how.

The salary revisions will now depend on the 'fitment factor', a multiplier that is applied to the current basic pay

Govil spoke about issues ranging from Unified Pension Scheme (UPS) and pay commission to continued thrust on capital expenditure

The Supreme Court on Tuesday asked all high courts to expedite setting up a two-judge panel to address grievances of district judicial officers on the implementation of the Second National Judges Pay Commission recommendations. A bench comprising Justices B R Gavai, Augustine George Masih and K Vinod Chandran passed the order after senior advocate K Paremeshwar, who is assisting it as an amicus curiae, said many high courts were yet to form the Committees for Service Conditions of the District Judiciary (CSCDJ) as directed by it earlier. The top court, on January 4 last year, said it recommended setting up the two-judge panel in all high courts to ensure that the orders on pay, pension and other retiral benefits for judicial officers as per the Second National Judicial Pay Commission (SNJPC) were implemented. On Tuesday, the amicus said while some high courts had set up the panels, they did not meet regularly to deal with the grievances, prompting several judicial officers to move t

While the larger issue of reforms in the civil services has hardly ever been acted upon, except the Sixth Pay Commission others have been prudent in offering wage growth

Commission's recommendations will help around 4.5 million central government employees and 6.8 million pensioners

The current pay commission, which helps determine govt employee's salaries, allowances, and pensions, is set to end in 2026

"The term of the last Pay Commission will end in 2026. Establishing the 8th Pay Commission well in advance, in 2025 itself, will give us sufficient time to get the recommendations," Vaishnaw said