Overview
- After the Union Cabinet approved the Terms of Reference on October 28, a three‑member commission chaired by Justice (retired) Ranjana Desai began work on revising central pay and pensions.
- The panel’s report is due in about 18 months, targeting April 2027, and media analyses suggest implementation could slip to late 2027 or early 2028 with retrospective effect proposed from January 1, 2026.
- Brokerage research from Kotak and Ambit pegs the likely fitment factor between 1.8 and 2.46, while some reports continue to speculate about higher figures up to 2.57.
- For Level 1 staff, the projected multipliers translate to a basic pay move from Rs 18,000 to roughly Rs 32,400–44,280, though the Dearness Allowance reset to zero would curb the immediate take‑home gains.
- Effective increases are estimated at about 13%–34% and will also apply to pensions, with consultations now expected from employee unions and pensioner groups representing tens of lakhs of beneficiaries.