India’s Eighth Central Pay Commission has not published revised salary figures, leaving central government employees unable to estimate an individual tax change until recommendations are made and the government accepts a pay structure.
The Ministry of Finance constituted the commission on Nov. 3, 2025, and gave it 18 months to submit recommendations. The resolution allows interim reports and directs the panel to review allowances and benefits alongside pay, while considering fiscal prudence, resources for development and welfare, unfunded pension costs and possible effects on state finances.
The commission’s public website lists notices and visits, including a Mumbai visit on Oct. 22-23, 2026, but no revised pay matrix or employee salary figures. NDTV Profit reported Nov. 3 that any tax change would vary with the pay revision, fitment factor and regime selected; it gave no employee-specific calculations.
The Income Tax Department’s new-regime rates for Tax Year 2026-27 are 0% on income up to ₹4 lakh, 5% from ₹4 lakh to ₹8 lakh, 10% from ₹8 lakh to ₹12 lakh, 15% from ₹12 lakh to ₹16 lakh, 20% from ₹16 lakh to ₹20 lakh, 25% from ₹20 lakh to ₹24 lakh and 30% above ₹24 lakh. Each rate applies only to the taxable income within its band.
The standard deduction for salary under the new regime is ₹75,000. The department’s Budget 2026 FAQ gives ₹12.75 lakh of income before that deduction as a zero-tax example, subject to resident rebate eligibility and rules for income taxed at special rates. The rebate is available to resident individuals with total income up to ₹12 lakh, with marginal relief just above that threshold. The old regime has different rates and deductions.
In a Feb. 10, 2026, reply to the Rajya Sabha, Minister of State for Finance Pankaj Chaudhary said the government’s fiscal assessment would follow the commission’s recommendations and their acceptance. Monarch has forecast acceptance in FY28, a view covered in an earlier EconoTimes report, but that forecast is not a government timetable. The commission’s recommendations are due by May 3, 2027.
