Daijiworld Media Network - New Delhi
New Delhi, Jun 20: The Eighth Central Pay Commission has completed the memorandum submission process and is now preparing to examine demands put forward by central government employees and pensioners before drafting its final recommendations.
The submission phase concluded on June 15, marking an important milestone in the commission's work, which began after the government approved its terms of reference in October 2025.
The panel now has around 10 months to prepare its recommendations, which are expected to impact nearly 55 lakh serving central government employees and about 69 lakh pensioners across the country.
Employee unions and pensioners' associations have strongly advocated for a higher fitment factor, along with a significant increase in the minimum basic pay.
Several organisations have also demanded the restoration of the Old Pension Scheme (OPS) in place of the existing National Pension System (NPS). In addition, they have sought revisions to various benefits, including House Rent Allowance (HRA), risk allowances, bonuses, leave entitlements and retirement-related benefits.
Earlier this year, the Centre announced a 2 per cent increase in Dearness Allowance (DA) and Dearness Relief (DR), raising the overall rate to 60 per cent from January 2026.
The government revises DA twice every year. While one revision takes effect in January, the second is implemented from July and is usually announced in September, and occasionally in October.
The upcoming DA revision will be determined based on the May and June 2026 data of the All India Consumer Price Index for Industrial Workers (AICPI-IW).
The commission has already conducted consultations in Delhi, Ladakh, Jammu and Kashmir, Hyderabad, Telangana and Maharashtra. It also held its first interaction with employee associations in Uttarakhand.
Further consultations are scheduled in Lucknow, Bhubaneswar and Kolkata through July.
A key factor influencing future salary revisions will be the fitment factor adopted by the government. The fitment factor is a multiplier used to calculate revised salaries by accounting for inflation and changes in the cost of living.
While analysts expect the final figure to be above 2.5, several employee associations have demanded a fitment factor of 3.15.
The final recommendations of the commission are expected to determine the extent of salary, pension and allowance revisions for millions of government employees and retirees in the coming years.