The 8th Central Pay Commission (8th CPC) has been in the spotlight for almost a month now. Ever since the government finalised the Terms of Reference (ToR) and issued the notification on November 3 announcing the commission members, employee unions have been demanding clarity on key issues — especially the scope of the ToR and the treatment of pensioners.
On the very first day of the Winter Session of Parliament on December 1, the matter came up in the Lok Sabha through an unstarred question asked by a parliamentarian Anand Bhadauria.
His question focused on two major issues:
Whether the government has formally notified the 8th Pay Commission, and
Whether the government plans to merge DA with basic pay as a relief measure for employees facing high inflation.
The Ministry of Finance responded to both points — confirming the constitution of the Commission but clearly stating that DA–basic pay merger is not under consideration.
What the government said in Parliament on 8th Pay Commission progress
In his written reply, Minister of State for Finance Pankaj Chaudhary confirmed that the government has notified the constitution of the 8th Central Pay Commission through a resolution dated November 3, 2025.
He also enclosed a copy of the Gazette notification, which names the three-member panel:
Chairperson: Justice Ranjana Prakash Desai
Member (Part-Time): Prof. Pulak Ghosh
Member-Secretary: Pankaj Jain
However, on the question of merging DA/DR with basic pay, the minister said there is no such proposal before the government at present. The statement makes it clear that the Centre currently prefers the existing system — revising DA/DR every six months based on the AICPI-IW (All India Consumer Price Index for Industrial Workers).
Why are employees unhappy with the 8th Pay Commission Terms of Reference?
Employee unions and pensioner groups have been raising concerns since the ToR was published last month. Their key objections are:
- Pensioners not clearly included
Unlike the 7th Pay Commission’s ToR, the new ToR does not explicitly mention pensioners. Unions argue that this weakens the scope for recommending pension revisions and ignores the needs of retired employees.
- No clarity on implementation date
The notification does not mention when the new pay structure will be implemented — whether from January 1, 2026, or another date. This has led to uncertainty among employees preparing for retirement or financial planning.
- Not aligned with staff-side recommendations
The staff side of the National Council (JCM) says the government ignored their charter of demands. They expected the ToR to cover wage revision principles, minimum pay calculation formula, and measures to address pay compression — but these aspects are missing or diluted.
- Concerns over wording compared to 7th CPC ToR
Employee unions allege that the language used in the 8th CPC ToR is more restrictive. They fear this may limit the Commission’s scope, potentially affecting allowances, pay structure, and pension benefits.
What’s in the official 8th Pay Commission ToR?
The ToR outlines a wide mandate for the Commission, including:
Reviewing pay, allowances, and benefits for Central Government employees, Defence forces, AIS officers, UT employees, and judiciary in UTs.
Suggesting an emolument structure that attracts talent and improves efficiency.
Reviewing bonus schemes and performance-linked incentives.
Examining gratuity and pension for both NPS and non-NPS employees.
Considering economic conditions, fiscal prudence, and the impact on state finances.
The Commission has 18 months to submit its report and may issue interim recommendations.
DA-basic pay merger: Why it matters
Many employee groups were hoping for DA–basic pay merger as an interim relief because inflation has remained high over the past two years. DA is currently revised twice a year, but unions argue that this does not reflect “real-time inflation” and erodes purchasing power.
The government’s clear “No proposal under consideration” response indicates that employees should not expect immediate relief through DA merger.
What happens next?
The 8th Pay Commission will now begin its work, gather data, consult departments, and take suggestions from unions and stakeholders. However, the growing dissatisfaction over the ToR suggests that employee bodies may intensify their representations in the coming months.
With inflationary concerns and rising expectations ahead of 2026 — the usual year for next CPC implementation — the debate around the 8th Pay Commission is likely to continue.
