The 8th Central Pay Commission is consulting employees, pensioners and other stakeholders before submitting recommendations by May 2027. Groups have proposed higher minimum pay, DA merger or inflation-linked allowances, and revised fitment factors.
Photo credit: Livemint
The 8th central pay commission (CPC) is in its consultation stage, gathering inputs from central government employees and pensioner groups, unions and stakeholders before it makes its final recommendations in May next year.
It is expected to examine and recommend changes that are desirable and feasible in the emoluments, including pay (usually includes salary structure, pay matrix, fitment factor), allowances (usually include DA, DR, HRA), other facilities / benefits, in cash or kind (includes increment, promotions, etc.).
The decisions are set to benefit more than 1 crore people, including around 50 lakh central government employees and about 65 lakh pensioners, including personnel and retirees with the defence and railway ministries.
The commission has scheduled an official state visit to Mumbai on 22-23 October to hold meetings with employee unions, representatives, groups, pensioner associations, federations, and other stakeholders.
Here's a look at some of the key demands
- Demand for DA merger
Multiple employee unions and representative groups have demanded that the Centre make an official announcement on DA merger. This is because the 7th CPC stipulated that DA may be merged with basic salary if it exceeds 50% and as of the last update, the component now comprises 60% of basic pay.
Notably, the government has not officially announced a DA merger (which would expand basic pay) as of June 2026, the issue has gained traction because basic salary determines other components of compensation i.e. provident fund contribution, pension, allowances, gratuity, and more. Thus, higher DA and by association basic pay means increase in overall salary and linked allowances.
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