Overview

• Finance Ministry has solicited Terms of Reference inputs from the Defence and Home ministries, the Department of Personnel & Training and state governments.
• In Lok Sabha replies, Minister Pankaj Chaudhary confirmed the commission remains unnotified with no chair or members appointed and cautioned that delays risk deferring the planned January 1, 2026 pay revisions into FY27.
• MPs T R Baalu and Anand Bhadauria pressed for updates during the Monsoon Session, seeking clarity on the commission’s formation timeline and scope in light of rising inflation pressures.
• National Mazdoor Conference president Subash Shastri formally urged the Prime Minister to appoint the chairman immediately and to merge half of dearness allowance into basic pay or pensions.
• A Kotak Institutional Equities report projects an effective salary increase of about 13% under an expected fitment factor of 1.8, down from the 14.3% raise under the 7th Pay Commission.