New Delhi, April 15 -- Constituted by Prime Minister Narendra Modi last year, the 8th Pay Commission is set to make big decisions on salary hikes and fitment factor, based on which updated compensation for central government employees and pensioners will be finalised.

The commission was announced in January last year, and its Terms of Reference (ToR) were issued in November. Since then, there has been much speculation over implementation of the salary hikes, arrears, amendments and proposed changes to pension structures.

The Pay Commission is a government panel established every 10 years to revise pay, allowances and pensions of central government employees and retired former servicemen. It is also responsible for wider implications of ...