Overview
- The pay panel is reviewing salaries, pensions and allowances under Terms of Reference issued on November 3, 2025, with an 18‑month deadline to submit its report.
- The exercise could reshape compensation for about 50 lakh central employees and nearly 69 lakh pensioners once the government examines and approves the recommendations.
- Analysts expect a fitment factor in the 2.4–3.0 range, pointing to a potential 20–35% increase in pay, though the final outcome depends on inflation, fiscal space and Finance Commission guidance.
- Any approved package is expected to be implemented with arrears from January 1, 2026, consistent with past pay‑commission rollouts.
- Reporting highlights implications for the armed forces, where minimum basic pay for soldiers is projected to rise by roughly 25–35% after implementation.