Published :
Updated :
For all latest news, follow The Financial Express Google News channel.
The government has formed the National Pay Commission 2025 to review and recommend revisions to public sector salaries within six months.
A 23-member body headed by former finance secretary Zakir Ahmed Khan was announced in a circular issued by the Ministry of Finance on Sunday.
The commission will assess salaries, allowances, and other benefits of employees across government, semi-government, autonomous bodies, state-owned banks and financial institutions, government-aided universities, and state-run industrial enterprises.
Currently, nearly 1.5 million public servants are paid under the 2015 pay scale, which features 20 salary grades. Amid mounting living costs, demands for a new pay structure have intensified in recent months.
Calls for inflation-adjusted allowances surfaced after the interim government took charge in August last year, with expectations that the June budget for FY2026 would include such measures.
While no direct allowance hike was announced, Finance Advisor Salehuddin Ahmed unveiled a special benefit package for public employees, effective from Jul 1.
The new commission is expected to submit its first report within six months of holding its inaugural meeting.