The Modi government is set to begin the new year on a decisive note. By approving the 8th Pay Commission’s recommendations, effective January 1, 2026, the Union Cabinet has not only fulfilled a long-pending administrative expectation but also delivered a genuine New Year gift to nearly 50 lakh Central government employees and 68 lakh pensioners.. The decision, which comes almost a decade after the implementation of the 7th Pay Commission, is both economically sound and politically astute. Inflation has eroded real incomes, and the cost of living has soared across cities and towns. By revising pay scales and pensions—expected to increase basic pay by 20–25 percent—the government has reaffirmed its commitment to rewarding those who keep the machinery of the state running. The move is likely to inject a healthy boost into the economy as well. Higher disposable incomes mean greater consumer spending—on housing, vehicles, education, and healthcare—setting off a multiplier effect that benefits multiple industries. Far from being populist, this step blends economic rationale with social sensitivity, an approach that has become the hallmark of the Modi administration. But this moment of celebration must also prompt a deeper reflection: what about others who serve the nation just as diligently, but without similar recognition? The most glaring omission is the banking sector, particularly employees and pensioners of nationalized banks. These are men and women who form the frontline of India’s financial infrastructure. They have driven every major government initiative—from Jan Dhan accounts and direct benefit transfers to loan moratoriums and digital transitions. Yet, when it comes to pay and pension revisions, they remain decades behind their Central government counterparts.
Many retired bank employees continue to draw unrevised pensions based on outdated scales, despite repeated appeals and court cases. It’s an injustice that cannot be justified any longer. If a Central government employee retiring in 2016 receives regular dearness relief adjustments, why should a bank retiree from 2002 live on a fraction of today’s basic needs? This neglect is especially ironic when one recalls that these same banks weathered the storm of bad loans, mergers, recapitalizations, and digital overhauls, emerging stronger and more efficient. Bankers absorbed public anger, handled systemic reforms, and sustained confidence in the economy during the toughest years. Surely, they too deserve the government’s gratitude in tangible form. The Modi government’s governance philosophy has often rested on inclusivity and fairness—Sabka Saath, Sabka Vikas. That principle must now extend to the country’s financial and public-sector employees. A dedicated, periodic mechanism—similar to the Central Pay Commission—could be institutionalized for banks, insurance companies, and other public enterprises to review compensation, allowances, and pensions without political delay or bureaucratic indifference. Fair pay is not just about economics; it is about dignity and justice. Employees across sectors form the veins and arteries of India’s development model. Their motivation, loyalty, and morale cannot be sustained if some are rewarded while others are forgotten. Prime Minister Modi’s decision on the 8th Pay Commission shows political will and administrative empathy. The next logical step would be to extend that same fairness to the unsung financial workforce that powers India’s growth story from behind the counters of public banks. The government has given a fine New Year’s gift. Now it must ensure that every loyal employee of India—whether in a ministry or a nationalized bank—has reason to celebrate too.
