8th Pay Commission: Will Govt Employees Get Rs 75 Lakh Home Loan at 5% Interest? Demand for Limit Hike

8th Pay Commission: The 8th Pay Commission is a hot topic right now among employees and pensioners. Both groups are eagerly anticipating substantial increases. Central government employees are requesting an increase in the advance limit for home construction under the 8th Pay Commission. They argue that property prices have risen across all sectors, rendering the current limit insufficient.

Employee organizations are advocating for the maximum building advance limit to be raised to Rs 7.5 million, with an interest rate of 5 percent. This request has been put forth by the National Postal Organization.

What is the current limit?

The 7th Pay Commission established the limit for house building advances at Rs 2.5 million or a 34-month basic salary. At present, employees are charged 7.5 percent interest on the basic advance. Employees contend that the current limit falls significantly short of urban living costs. Property prices in cities like Delhi, Mumbai, Bengaluru, and Hyderabad have surged dramatically. The organizations’ proposal suggests a house building advance limit equivalent to 60 months’ salary.

Additionally, they propose that the service limit be reduced from five years to two years. It’s important to note that a house building advance is a type of loan offered by the government to employees for purchasing or constructing a home. The 8th Pay Commission has commenced its work. It is projected that it will take 18 months to prepare and submit its report. The establishment of the 8th Pay Commission has been a long-standing demand from employees.

Meanwhile The 8th Central Pay Commission has sought suggestions and proposals from central government employees, pensioners, employee unions, and other stakeholders. The Commission issued a message on its official website stating that eligible individuals and organizations can submit their opinions and suggestions through an online portal within the stipulated timeframe. This online portal opened on March 5, 2026, and suggestions will be accepted until April 30, 2026.

Who can give suggestions?

According to the Commission, a variety of individuals and organizations can make suggestions. These include:
Central Government Employees (Industrial and Non-Industrial)
All India Services employees
Defence Forces personnel
Employees of Union Territories
Officers and employees of the Indian Audit and Accounts Department
Members of regulatory bodies (except RBI) established by an Act of Parliament
Officers and employees of the Supreme Court
Officers and employees of the High Court (whose expenses are borne by the Union Territories)
Judicial officers of lower courts in Union Territories
Pensioners and Employees Association/Union
Central Government Ministries, Departments and Organisations