Overview
- The Union Cabinet approved the Terms of Reference on October 28, setting a deadline of about April 2027 for the commission’s report.
- Brokerage estimates place the crucial fitment factor broadly between 1.8 and 2.46, which for Level‑1 could lift basic pay from Rs 18,000 to Rs 32,400–44,280.
- Actual in‑hand gains are projected to be lower because the Dearness Allowance, currently 58% of basic pay, will reset to zero when the new structure takes effect.
- Implementation typically follows months after the report, with current reporting pointing to late 2027 or early 2028, and the revision is expected to take effect retrospectively from January 1, 2026.
- The ToR requires weighing economic conditions, fiscal prudence, pension liabilities, state finances and CPSU/private‑sector pay, as unions and ex‑servicemen prepare submissions including OROP anomaly claims.