- 8th Pay Commission consults stakeholders for salary, pension recommendations.
- Unions propose pay matrix restructuring, minimum pay increase.
- Consultations ongoing; report expected by 2027, implementation to follow.
The 8th Pay Commission has entered a crucial stage as it continues consultations with employees, pensioners and other stakeholders before finalising its recommendations on salaries, pensions and allowances.
The panel is expected to recommend changes that could affect nearly one crore beneficiaries, including around 50 lakh central government employees and about 65 lakh pensioners, including retired defence personnel. While the commission’s final report is still some time away, employee organisations have already submitted several proposals, with a restructuring of the existing pay matrix emerging as one of their key demands.
The 8th Central Pay Commission, chaired by former Supreme Court judge Justice Ranjana Prakash Desai, was constituted on November 3, 2025. Former IAS officer Pankaj Jain is the Member-Secretary, while Professor Pulak Ghosh, a member of the Prime Minister’s Economic Advisory Council, is also part of the commission.
Why Are Employee Unions Seeking A Pay Scale Merger?
One of the major suggestions placed before the commission is the merger of multiple pay levels under the existing pay matrix.
Employee representatives have proposed combining Levels 2 and 3, Levels 4 and 5, Levels 7 and 8, and Levels 9 and 10 into common pay scales. According to the employee body, officials in these grades often perform similar responsibilities and receive comparable salaries, yet continue to be placed in separate pay levels. They argue that this has led to disparities in career progression and employee satisfaction over time.
Another proposal calls for a one-time revision for employees currently placed in Level 5 by merging them with Level 6.
According to the employee body, a large number of Group C employees working in departments such as the Central Secretariat, Defence, Railways and Postal Services have remained in Level 5 for an extended period, limiting opportunities for career advancement.
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NC-JCM Pushes For Wider Changes
Among the organisations that have submitted recommendations is the National Council-Joint Consultative Machinery (NC-JCM), one of the largest representative bodies for central government employees.
According to reports, the NC-JCM has urged the commission to increase the minimum basic pay to Rs 69,000. It has also proposed a simplified pay structure, salary components linked to housing and utilities, pension reforms, and an annual increment of 6 per cent instead of the existing 3 per cent.
The organisation has argued that salaries should be linked more closely to inflation to help preserve employees’ purchasing power.
Reports also suggest that the NC-JCM has sought simpler promotion policies to improve career progression and reduce stagnation across various departments.
Other Suggestions Placed Before The Commission
Apart from changes to the pay structure, employee organisations have reportedly recommended improvements to several service-related benefits.
These include easier provident fund withdrawals, quicker settlement of medical reimbursement claims, enhanced life insurance coverage for employees and pensioners, and simplified procedures for income tax-related documentation.
These issues have also been raised during the stakeholder consultation process being conducted by the commission.
Consultation Process Continues
The commission concluded the first phase of public consultations on June 15. It will continue collecting data and inputs from ministries and government departments until July 31.
Since March, members of the commission have been visiting different states to interact with employee associations, pensioners’ groups and other stakeholders. Representatives from major government departments, including the Railways and Defence, have also participated in these discussions.
The feedback received during these consultations is expected to help shape the commission’s recommendations on salaries, pensions and allowances.
When Could The Recommendations Be Submitted?
The 8th Pay Commission is expected to submit its report around 18 months after its constitution.
If the current timeline remains unchanged, the recommendations could be submitted between February and April 2027.
However, previous pay commissions have taken additional time before their recommendations were fully implemented. Based on past trends, the revised pay structure could take another two to three years to be rolled out after the report is submitted.
For now, the commission remains in the consultation phase, with its eventual recommendations expected to determine the salary, pension and allowance structure for nearly one crore serving and retired central government personnel over the coming years.
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