Govt employees’ salaries may increase in the new year:Earnings up to ₹12 lakh tax-free instead of ₹7 lakh earlier; find here 7 major changes coming in 2026

The salary of central government employees and pension of retired people may increase in the new year. Also, from January 1, CNG and domestic PNG prices will decrease by ₹2 to 3. However, interest rates on many savings schemes may also decrease. Additionally, earnings up to ₹12 lakh will become tax-free. 7 major changes coming in 2026… 1. Salary may increase with 8th Pay Commission
The central government has announced the implementation of the 8th Pay Commission. The timeline hasn’t been specified yet, but it is believed that it may be implemented from January 2026. The government says that its purpose is to revise the salary, pension and allowances of central employees. This will increase the amount received by employees. Let’s say according to the 7th Pay Commission, if your basic salary is currently Rs 35,400, then after DA and HRA it becomes around Rs 65,500. After the 8th Pay Commission, this could go beyond Rs 1.10 lakh. What is Fitment Factor? This is a multiplier number which is multiplied with the current basic salary to calculate the new basic salary. The Pay Commission determines this considering inflation and living costs. 2. CNG and domestic PNG will become cheaper
The Petroleum and Natural Gas Regulatory Board (PNGRB) has reduced gas transportation charges from January 1, 2026. After this, CNG and domestic piped natural gas (PNG) prices will decrease by Rs 2-3 per unit across different states in the country. 3. Save money with new ITR slabs Under the new tax regime for financial year 2025-26, no tax will need to be paid on income up to ₹12 lakh when filing ITR. For salaried individuals, the exemption will be ₹12.75 lakh with a standard deduction of ₹75,000. Previously, this limit was ₹7 lakh. According to tax expert Chartered Accountant (CA) Anand Jain (Indore), those with annual income up to ₹12 lakh will now save ₹60,000 in tax. Those with income of ₹10 lakh will save ₹40,000. Additionally, for those with annual income between ₹20 to ₹24 lakh, a new 25% tax slab has been included in the new regime. Previously, income above ₹15 lakh was taxed at 30%. This will result in tax savings for middle and upper-middle class. 4. Reduction in Small Savings Schemes Interest By the end of this month, i.e. December 31, interest rates on small savings schemes may be announced to be cut. The Reserve Bank of India (RBI) has reduced the repo rate by 25 basis points to 5.25%. Due to this, government savings scheme rates are also expected to decrease. 5. Cars may become 2-3% more expensive Cars from companies like Maruti, Tata, MG and Hyundai may become more expensive from January 1. MG has already announced a price increase, while other companies are also expected to announce it soon. Due to increased input costs, MG Motor has raised car prices by up to 2%. This will make the MG Hector more expensive by Rs 38,000. Besides MG, luxury segment manufacturers Mercedes and BMW have announced price increases of 2-3%. 6. Aadhaar mandatory for railway reservation from January 12
From January 12, users whose IRCTC accounts are not linked with Aadhaar will not be able to book tickets between 8 AM to 12 midnight. These rules only apply for the first day when reserved ticket booking opens. Reservation opens 60 days before the train departure date. The day booking opens is considered the first day. The purpose is to give maximum passengers a chance to book tickets online on opening day and prevent bookings through fake accounts. 7. New Income Tax Act will be implemented The Income Tax Act 2025 will come into effect from April 1, 2026. This will replace the old law of 1961. The government says the new act will simplify tax laws. This will not change the tax rates. 4 major points of the new Income Tax Act… What are the benefits for common people?