The 8th Pay Commission, established in 2022 by Prime Minister Narendra Modi, is currently assessing a new pay structure for central government employees. A key demand from employee unions is raising the minimum basic pay to ₹69,000. The proposed fitment factor of 3.83 aims to ensure a uniform salary increase across all levels. Employees expect that the dearness allowance (DA), which is projected to reach 65-70% by mid-2026, will be merged into the new basic pay, effectively resetting the DA to zero. The commission's reference date is set for January 1, 2026, and employees will receive retroactive pay once the new structure is finalized, likely around mid-2027. This means they will continue to receive their current salaries under the 7th Pay Commission until the new pay structure is officially announced. Additionally, discussions around pension benefits include proposals to increase the full pension to 67% of the last drawn pay, while the restoration of the Old Pension Scheme remains a contentious issue.