Pay Commission: Why It Matters for Millions of Government Employees As of 2026, India’s central government pay structure continues to be shaped by the 7th Central Pay Commission, implemented from 1 January 2016, while discussions around future pay revision remain closely watched by employees, pensioners and state governments. The scale of the system is large: the 7th Central Pay Commission had covered about 47 lakh central government employees and about 53 lakh pensioners, according to the Government of India’s implementation-related statements in 2016. Pay commissions in India are not routine wage negotiations. They influence salaries, pensions, allowances, defence personnel compensation, state government payrolls and fiscal planning. Their recommendations often affect household income for government employees and public expenditure for years. The subject has returned to public attention because inflation-linked dearness allowance revisions have continued, several state governments h...