There’s some wonderful and comforting news for millions of central government employees and pensioners across the country. The 8th Pay Commission has begun its crucial marathon series of meetings with employee organizations and various pension unions in New Delhi, which will continue until August 10th.
Chaired by Justice Ranjana Prakash Desai, the commission’s meetings have focused on crucial issues such as the fitment factor, a substantial increase in basic salaries, restructuring of allowances, and pension reforms. With the central government setting an 18-month deadline, the entire process has now reached its final and most crucial stage.
High-level meetings underway in Delhi and future plans
These high-level discussions taking place in New Delhi are considered significant because the Commission has already successfully completed a significant portion of its 18-month term. Although the panel has not publicly shared an official agenda for these meetings, experts believe the focus of the discussions will be on critical issues concerning millions of central government employees and elderly pensioners.
After holding discussions with stakeholders in New Delhi, the 8th Pay Commission is also scheduled to visit other major cities of the country like Chennai, Puducherry, Chandigarh and Jaipur in the coming weeks.
When will the final report of the commission be submitted?
It is crucial to understand that the 8th Pay Commission is a temporary body, constituted by the government on November 3, 2025. This three-member panel is headed by former Supreme Court judge Justice Ranjana Prakash Desai, while Professor Pulak Ghosh and Member-Secretary Pankaj Jain are its other key members.
It is expected that the Commission will submit its final report to the Central Government within the stipulated 18 months of its formation, with the likely deadline being around May-June 2027.
What are the major demands of employees and pensioners?
The National Council-Joint Consultative Machinery (NC-JCM) and other major unions across the country have strongly demanded that the fitment factor be increased to 3.83. If this demand is accepted, the minimum basic salary of employees will jump from ₹18,000 to ₹69,000. However, no final decision has been made on this yet, and the Commission will only take a concrete decision after hearing from all stakeholders.
On the other hand, pensioners’ unions are demanding that the full pension be increased to 67 percent of the last drawn salary, and the family pension be increased to 50 percent. Additionally, proposals have been tabled to provide additional pension benefits at increased rates to senior pensioners over the age of 65, and to increase the fixed medical allowance directly to ₹3,000 per month.
Unions have suggested increasing the House Rent Allowance (HRA) to 36%, 24%, and 12%, respectively, for all cities in the X, Y, and Z categories. Furthermore, amid speculation that the dearness allowance (DA) will surpass the 50% mark by early 2026, serious discussions are underway to merge it with the basic salary and re-define all allowances.