8th Pay Commission update: Will govt amend ToR for 8th CPC? Employees demand DA merger, OPS revival and…

Concerns have surged among employees and pensioners over pension revisions in the 8th Pay Commission, fuelling the demand for the restoration of the Old Pension Scheme.

8th Pay Commission update: Amid the concerns revolving around the Terms of Reference (ToR) for the 8th Pay Commission, an umbrella body of central government employees has demanded amendments in the ToR to address issues workers’ bodies have previously flagged.

In a circular issued on Monday, the Confederation of Central Govt Employees & Workers said the central government has not initiated any tangible action to resolve the grievances of employees and pensioners related to the 8th Central Pay Commission (8th CPC). “Modify Terms of Reference of 8th CPC by incorporating suggestions/ views given by Confederation and staff side NC-JCM on Revision of emoluments of Employees and Pensioners and other issues,” the circular reads.

What are the demands?

• The circular included a ‘Charter of Demands’ which has made following demands;
• Amendments in the ToR for the 8th Pay Commission CPC by incorporating suggestions/views given by Confederation and staff side NC-JCM on Revision of emoluments of Employees and Pensioners and other issues.
• Merging 50% DA/DR with Basic Pay/Pension.
• Granting 20% of Pay/Pension as an Interim Relief (IR) w.e.f. 1.1.2026.
• Revival of Old Pension Scheme for all employees, and scrapping NPS/UPS.
• No distinctions amongst pensioners should be made, potentially on the basis of factors like Date of Retirement and Accepted recommendations of Central Pay Commission.
• Release of three instalments (18 months) of DA/DAR frozen during Covid pandemic to Employees and Pensioners
• Restoration of commuted part of pension after 11 years instead of 15 years.
• Removal of 5% ceiling imposed on Compassionate Appointment, grant Compassionate Appointment in all cases to wards/Dependants of Deceased employee.

Will govt amend 8th CPC ToR?

Meanwhile, debates over the 8th Pay Commission are expected during the upcoming Parliament Session as opposition MP’s are likely to seek answers from the government over concerns such as ToR anamolies and long-standing employees’ demands like earness Allowance (DA) merger, pension benefits, and the fitment factor.

Hundreds of questions related to the 8th Pay Commission have been uploaded on the Lok Sabha and Rajya Sabha portals, including a written question by MP Anand Bhadauria. which seeks government clarification on key points, including whether the Centre has formally constituted the 8th, and whether DA should be merged with basic pay as an immediate relief measure.

Why employees seek Old Pension Scheme revival?

According to reports, most central government employees have not switched to the Unified Pension Scheme (UPS) even as the November 30 deadline is now less than two weeks away. This is a clear indication that employees are firmly behind their demand to roll back to the OPS and are reluctant to switch to any new framework under the National Pension System (NPS).

Concerns have surged among employees and pensioners over pension revisions in the 8th Pay Commission, fuelling the demand for the restoration of the Old Pension Scheme.

When 8th Pay Commission is likely to be implemented?

Earlier this month, on November 3, Prime Minister Narendra Modi-led Union Cabinet approved the terms of reference (ToR) of the 8th Pay Commission, which will benefit 50 lakh central government employees and 69 lakh pensioners and will have implications on the emoluments of the staff of state governments.

If we go by the implementation of previous pay commissions, the government usually takes about 18 to 24 months to implement the recommendations of the commission. Thus, its unlikely that 8th Pay Commission would be implemented before mid-2027, while reports suggest that the next CPC implementation might be pushed back to early 2028.