Overview
- The commission, constituted via a November 3 finance ministry resolution and chaired by Justice (Retd.) Ranjana Desai, has been directed to submit recommendations within 18 months.
- Officials said there is no proposal to merge Dearness Allowance or Dearness Relief with basic pay or pensions, with DA/DR currently at 55% and revised every six months.
- The exercise covers 50.14 lakh central employees and about 69 lakh pensioners, while staff federations contest perceived gaps in the ToR and press for explicit pensioner coverage.
- Consultancy estimates place the likely fitment factor in roughly the 1.83–2.46 range, implying a potential move in the minimum pay from Rs 18,000 to about Rs 32,940–44,280.
- Media analyses, citing the report timeline and Cabinet review, foresee implementation only after the commission’s submission, realistically in late 2027 or early 2028, as unions demand arrears from January 1, 2026 and warn of legal action if that precedent changes.