In simple words, the Pay Commission is a panel constituted by the Government of India to recommend changes in the salary structure of Central government employees - both civil and defence - serving as well as retired. 

The saga began in 1946, soon after India’s independence, and since then seven pay commissions have been implemented.

Now the government has constituted the 8th CPC, headquartered in New Delhi, under the chairmanship of Justice (Retired) Ranjana Prakash Desai. It has been tasked to make recommendations within 18 months.

Here we go back, one step at a time, to take a close look at all major developments - from the latest consultations to when the 8th CPC was constituted on 3 November 2025.

Consultation Phase

The 8th CPC has entered a crucial consultation phase. Meetings are taking place with employee unions, pensioner groups, and other stakeholders across the country. Central government employees and pensioners are closely tracking discussions related to the fitment factor, salary hike, annual increments, Dearness Allowance (DA), pensions and allowances.

Key Developments So Far:

1) Intensive consultations started with stakeholders from defence and railway unions in Delhi. These meetings are part of the Commission’s broader exercise to gather feedback from employee organisations, pensioners, and sector-wise representatives before preparing its final recommendations.

2) It has also announced regional consultation visits in Telangana, Jammu and Kashmir, and Ladakh. Meetings in other states and Union Territories are expected in the coming months.

3) A major development is the extension of the memorandum submission deadline till May 31, 2026. The extension gives employee unions and stakeholders more time to submit recommendations related to salaries, pensions, allowances and service conditions.

4) Monthly salary hike demands have also intensified, with major employee organisations seeking substantial increases in minimum basic pay amid rising inflation and increasing living costs.

5) Fitment factor revision remains one of the biggest talking points. A fitment factor is a mathematical multiplier to convert an employee’s pre-revised basic salary (or pension) into the new, revised basic salary structure. 

At present, the fitment factor under the 7th Pay Commission stands at 2.57. The fitment factor for the 8th CPC has not been officially finalised, but various reports based on representations by employee organisations project it between 2.28 and 3.83. 

6) Employee unions are also pushing for higher annual salary increments. While the current annual increment rate stands at 3 percent, several organisations have demanded revisions in the range of 5 to 6 percent.

7) Pension reforms and Dearness Allowance-related demands are also being discussed extensively. Several unions have sought pension parity, inflation-linked wage systems, and revisions related to DA calculations and future increases.

Memorandum Submission

Three major organisations have already submitted memorandums to the Commission: the National Council Joint Consultative Machinery (NC-JCM); the Maharashtra Old Pension Organisation; the All India Defence Employees Federation (AIDEF). These organisations represent Central government employees, pensioners, defence and civilians, and technical staff across multiple departments.

Apart from salary revision, the unions are also demanding higher House Rent Allowance (HRA), revisions in Travel Allowance (TA), inflation-linked compensation models, faster promotions, and a simplified pay structure.

Several employee bodies have demanded pension parity with revised salary structures, inflation-linked wage systems, and changes related to Dearness Allowance calculations. However, final decisions will depend on the recommendations submitted by the Commission after the consultation process concludes.

High Demand For Delhi Slots

Stakeholders want more meetings to take place in Delhi. The 8th CPC received an overwhelming number of requests for its April 28–30 Delhi meetings. Officials said they would meet as many stakeholders as possible, but the compressed three-day schedule meant some unions and associations would have to wait for later rounds. 

The first phase was intended as the starting point for a broader consultation process that would continue across the country.

Key Proposals From Employee Unions

The National Council–Joint Consultative Machinery formally proposed a minimum basic pay of ₹69,000 with a 3.83 fitment factor, citing rising living costs. 

The Bharatiya Pratiraksha Mazdoor Sangh sought ₹72,000 minimum pay, a 4.0 fitment factor, and higher annual increments, while teacher groups called for higher HRA, Old Pension Scheme restoration, and retirement age extension. 

These demands were not binding and were to be assessed during the consultation phase before recommendations were made.

Continuing Meetings

The 8th CPC scheduled interactions in New Delhi on 28, 29 and 30 April, while the Commission would be visiting Pune in Maharashtra on May 4 and 5. For the first such meeting consultation, the pay panel visited Dehradun, Uttarakhand on 24 April.

Inviting Stakeholders 

On 11 April 2026, the 8th CPC announced the schedule for interactions in Delhi on 28, 29, 30 April 2026. It invited unions/associations desirous of interacting with the Commission in Delhi to submit memorandums at the Commission’s website (8cpc.gov.in) and thereafter submit their request seeking an appointment at [email protected] on or before 20 April 2026, along with the ‘unique memo Id’ generated after submitting a memorandum. Venue details and meeting schedule would be intimated subsequently, it said.

Office Accommodation 

The commission was allotted office space at the 3rd and 7th floors of the Chanderlok Building, Janpath, New Delhi – 110001 on March 5, 2026, for centralising its operations.

Constitution Of 8th CPC:  

On 3 November 2025, the government announced the constitution of the pay panel, made Justice (Retd) Desai its chairman, Prof Ghosh its part-time member and IAS officer Jain its member-secretary.

Terms Of Reference

Through a Gazette notification dated 3 November 2025, the government assigned the following task to the pay panel led by Justice (Retd) Desai:

1) To examine and recommend changes that are desirable and feasible in the emoluments, including pay, allowances, and other facilities/ benefits, in cash or kind, having regard to rationalisation, contemporary functional requirements, and the specialised needs of various departments, agencies and services in respect of the following categories of employees:

Central Government employees — industrial and non-industrial

Personnel belonging to the All India Services

Personnel belonging to the Defence Forces

Personnel of the Union Territories

Officers and employees of the Indian Audit and Accounts Department

Members of the regulatory bodies (excluding the Reserve Bank of India) set up under the Acts of Parliament

Officers and employees of the Supreme Court

Officers and employees of the High Courts whose expenditure is borne by the Union Territories

And judicial officers of subordinate courts in the Union Territories

Note: (In respect of judicial officers, the Commission shall adhere to the principle enunciated by the Supreme Court in its Judgement dated 24 August 1993 in the All India Judges’ Association and Others V/s Union of India and Others, viz. that there shall be no link between service conditions of judges and administrative executive and that the service conditions of judges have to meet the special needs of the judiciary).

2) To work out an emolument structure conducive to attracting talent to government service, promoting efficiency, accountability, and responsibility in the work culture.

3) To examine the existing schemes of bonus with a view to improving performance and productivity and make recommendations on the general principles, financial parameters, productivity, and performance-linked parameters for an appropriate incentive scheme to reward excellence in productivity and performance.

4) To review the existing allowances and conditions of their admissibility and recommend their rationalisation keeping in view the multiplicity of allowances.

5) (i) To review the Death-cum-Retirement Gratuity of employees borne on the National Pension System (including Unified Pension Scheme) and make recommendations thereon.

(ii) To review the Death-cum-Retirement Gratuity and pensions of employees.

6) To make recommendations on the above, keeping in view:

The economic conditions in the country and the need for fiscal prudence.

The need to ensure that adequate resources are available for developmental expenditure and welfare measures.

The unfunded cost of non-contributory pension schemes.

The likely impact of the recommendations on the finances of state governments which usually adopt the recommendations with some modifications.

The prevailing emolument structure, benefits, and working conditions available to employees of Central Public Sector Undertakings and private sector.

In the notification, the government said the Commission will devise its own procedure and may appoint such advisors, institutional consultants and experts, as it may consider necessary for any particular purpose. 

It may call for such information and take such evidence, as it may consider necessary. 

Ministries and departments of the Government of India shall furnish such information and documents and other assistance as may be required by the Commission. The Government of India trusts that state governments, service associations, and others concerned will extend to the Commission their fullest cooperation and assistance.

The Commission will have its headquarters in Delhi, and it will make its recommendations within 18 months of the date of its constitution. It may consider, if necessary, sending interim reports on any of the matters as and when the recommendations are finalised.

Initial Announcement 

On 16 January 2025, the Union Cabinet decided to constitute the 8th CPC, with Information and Broadcasting Minister Ashwini Vaishnav announcing the decision at a press briefing. 

Later, while replying to a question in Parliament on 21 July 2025, Minister of State for Finance Pankaj Chaudhary said inputs were being sought from major stakeholders, including the Ministry of Defence, Ministry of Home Affairs, Department of Personnel and Training, and from state governments. He also said the chairperson and members of the 8th CPC would be appointed once the Commission was notified by the government.