The 8th Pay Commission has officially been constituted, setting the stage for a comprehensive review of salary structures, pensions, and allowances for central government employees and retirees. The commission has been given 18 months to submit its recommendations, and its report is expected to directly impact nearly 50 lakh employees and 65 lakh pensioners across the country. In total, close to one crore individuals could see changes in their income structure.
With such wide-reaching implications, the government has invited suggestions from stakeholders and citizens to help shape the future pay framework.
The Centre has released an 18-question questionnaire on the MyGov portal. Employees, pensioners, employee associations, judicial officers, and even members of the public can submit their views.
The last date to send suggestions is March 16, 2026. Authorities have clarified that the identity of respondents will remain confidential. This participatory approach aims to make the new pay structure more transparent and inclusive.
One of the central questions before the commission is whether the framework introduced by the 7th Central Pay Commission remains adequate under current economic conditions.
The fitment factor — used to revise basic pay — is under review. Stakeholders have been asked whether the existing formula adequately addresses rising living costs. The commission is also seeking feedback on how the minimum wage should be determined. Should it be linked to household expenditure, inflation rate, or overall living standards?
These discussions are critical, as even a small revision in the fitment factor can significantly increase take-home salaries and pensions.
The role of Dearness Allowance (DA) is also being re-evaluated. The commission has raised key questions:
Should DA be merged with basic pay?
Are House Rent Allowance (HRA), transport allowance, and medical benefits sufficient in the current economic environment?
Can real-time inflation data be better integrated into salary calculations?
If DA is merged into the basic pay, it could result in a higher base salary, which in turn may impact other allowances and retirement benefits.
The commission is also examining pension-related issues. Opinions have been sought on both the Old Pension Scheme (OPS) and the National Pension System (NPS). Questions regarding minimum guaranteed pension, the Modified Assured Career Progression (MACP) scheme, and time-bound promotions are part of the consultation process.
Additionally, the method for calculating arrears under the new recommendations is being considered. Since arrears can significantly affect retirees and serving employees, clarity on this matter is highly anticipated.
The questionnaire also covers modern workforce concerns such as:
Performance-linked pay
Equal pay for equal work
Special provisions for women employees
Rights of contractual staff
These elements indicate that the 8th Pay Commission is not only reviewing salary figures but also examining broader employment policies.
Given the scale of the impact, employee unions and pensioner groups are closely watching developments. Any upward revision in salaries and pensions could have broader economic implications, including increased consumer spending and fiscal considerations.
With the consultation window open until March 16, eligible stakeholders are encouraged to participate. The recommendations finalized over the next 18 months will likely define the salary and pension landscape for the coming decade.
