From 8th Pay Commission to LPG Price Hike: Major Rule Changes Effective from January 1

New Delhi — The New Year has ushered in a series of important regulatory and policy changes that will have a direct impact on the finances and daily lives of citizens across the country. Several of these measures came into force from January 1, bringing both relief and added expenses for different sections of society.

One of the most consequential developments is the implementation of the 8th Pay Commission, which will come into effect from January 1, 2026. The Union government had approved the proposal earlier, and it is expected to benefit nearly 50 lakh central government employees and around 69 lakh pensioners. With the new pay commission, salaries and pensions are likely to increase by an estimated 20 to 35 per cent, significantly boosting household incomes for government staff and retirees.

On the other hand, the New Year has also brought an increase in cooking fuel costs for commercial users. The government has raised the price of 19-kg commercial LPG cylinders by Rs 111 with effect from January 1, 2026. However, domestic LPG cylinders used for household cooking, weighing 14.2 kg, have been kept unchanged, offering relief to ordinary consumers.

There is some positive news on the fuel front as well. Indraprastha Gas Limited (IGL) has revised the prices of CNG and PNG from the New Year. CNG prices have been reduced by Rs 3 per kg, while PNG has become cheaper by Rs 0.70 per unit. The revised rates, however, will vary across cities depending on local pricing structures.

Another significant change relates to the way credit scores are updated. Until now, credit scores were refreshed once a month. From 2026 onwards, credit scores will be updated every week, or once every seven days. This move is expected to benefit borrowers who make timely EMI payments, as improvements in their credit behaviour will be reflected more quickly in their credit profiles.

January 1 also marks the end of the deadline for linking PAN with Aadhaar. If a PAN card was not linked to Aadhaar by December 31, 2025, it becomes inactive from January 1. An inactive PAN can lead to difficulties in filing income tax returns and conducting high-value financial transactions, including banking and investments.

In addition, the central government has rolled out a new Farmer ID system for beneficiaries of the PM Kisan scheme. From January 1, 2026, the system is being implemented in several states, including Uttar Pradesh, Bihar and Madhya Pradesh. The initiative aims to streamline the identification of eligible farmers and improve the efficiency of benefit transfers.

With inputs from IANS