The 8th Pay Commission has entered a decisive stage as it begins extensive consultations with stakeholders after seeking suggestions from employees, pensioners and various organisations across the country. The discussions are expected to influence the future salary structure, pensions and allowances of nearly one crore beneficiaries, including around 50 lakh central government employees and approximately 65 lakh pensioners, among them retired defence personnel.
Although the commission’s final recommendations are still some time away, employee unions have already submitted a wide range of proposals, with one of the biggest being a complete restructuring of the current pay matrix.
The chaired by former Supreme Court Justice Ranjana Prakash Desai, was constituted on November 3, 2025. Former IAS officer Pankaj Jain is serving as its Member-Secretary, while Professor Pulak Ghosh, a member of the Prime Minister’s Economic Advisory Council, is also a member of the panel.
Employee Bodies Push For Major Pay Matrix Changes
A significant demand placed before the commission is the consolidation of multiple pay levels into broader salary bands.
Employee representatives have proposed merging Levels 2 and 3, Levels 4 and 5, Levels 7 and 8, and Levels 9 and 10. According to the unions, employees in these grades often carry out comparable responsibilities and receive similar salaries despite being placed in different pay levels. They argue that removing these distinctions would improve fairness, reduce disparities and enhance employee morale.
The unions have also sought a one-time upgradation for existing Level 5 employees by placing them in Level 6. They contend that a large number of Group C employees in departments such as the Central Secretariat, Railways, Defence and Postal Services have remained stuck at Level 5 for long periods, limiting career advancement opportunities.
NC-JCM Seeks Higher Minimum Salary And Pension Reforms
Among the most detailed submissions has been that of the National Council-Joint Consultative Machinery (NC-JCM), one of the country’s largest employee representative organisations.
The body has recommended increasing the minimum basic pay to Rs 69,000. It has also proposed a simplified salary structure, housing and utility-linked pay components, pension reforms and an annual increment of 6 per cent instead of the existing 3 per cent. The organisation believes salaries should be more closely linked to inflation so that employees’ purchasing power remains protected over time.
According to reports, the NC-JCM has also called for simplified promotion policies to ensure smoother career progression and reduce stagnation among government employees.
In addition to salary-related changes, employee organisations have reportedly requested improvements in several service benefits. These include easier provident fund withdrawals, quicker processing of medical reimbursement claims, enhanced life insurance coverage for employees and pensioners, and simplified income tax documentation procedures.
Nationwide Consultations Underway; Final Report Still Some Time Away
The commission concluded the first phase of public consultations on June 15 but will continue collecting data and inputs from ministries and government departments until July 31.
Since March, members of the commission have travelled across various states, holding discussions with employee associations, pensioners’ groups and other stakeholders. Representatives from key departments, including Railways and Defence, have also participated in these meetings.
These consultations are expected to play a critical role in determining future salary structures, pension formulas and allowances for central government employees.
The commission is likely to submit its report around 18 months after its constitution. If the current timeline remains unchanged, the recommendations could be ready between February and April 2027.
However, implementation is expected to take considerably longer. Previous pay commissions have typically seen a gap of two to three years between the submission of recommendations and their full rollout. As a result, even if the report is submitted in 2027, the revised salary structure may not be implemented until 2029 or 2030.