8th Pay Commission News: The Centre recently notified the Terms of Reference (ToR) for the 8th Central Pay Commission (CPC), which is a three-member panel headed by Justice Ranjana Desai.

After the notification was issued, employees and pensioners went through the wording of the ToR, only to find that the 8th Pay Commission’s ToR is somewhat different from that of the 7th Pay Commission, creating doubts in their minds about the government’s intentions.

All India Defence Employees Federation – a trade union in India that organises civilian workers in establishments under the Ministry of Defence and is supported jointly by the All India Trade Union Congress and the Centre of Indian Trade Unions – has flagged several concerns with regarding to the drafting of the 8th CPC ToR, a document that lay down rules and responsibilities of the panel about salary and pension revision.

In a letter written to Finance Minister Nirmala Sitharaman, the employees’ federation has said that the stakeholders’ expectation (employees’ expectation) is missing in the ToR of the 8th CPC.

“The Terms of Reference, especially with regard to the revision of emoluments of central government employees, are totally different from the Terms of Reference given to the 7th Central Pay Commission,” it claimed.

‘Non-inclusion of more than 69 lakh pensioners and family pensioners in the purview of 8th CPC’

The employees’ union asserted that “it is most unfortunate that 69 lakh central government pensioners and family pensioners who have given their sweat and blood to the country for more than three decades while in service are kept out of the purview of 8th CPC”.

“…revision of pension is a right of the pensioners and they cannot be discriminated. Majority of them (pensioners) are in the fag end of their life and outright ignoring them is totally unjustified.”

AIDEF referred to 7th CPC ToR, highlighting some portions missing in the 8th CPC ToR to make it a point. Given below for ready reference:-

“2 (f). To examine the principles which should govern the structure of pension and other retirement benefits, including revision of pension in the case of employees who have retired prior to the date of effect of these recommendations, keeping in view that retirement benefits of all central government employees appointed on and after 01.01.2004 are covered by the New Pension Scheme (NPS)”.

“It is requested that the government may kindly include the ToR (referring to 7th CPC) to the 8th CPC and an amendment may please be issued for including in the ToR for revision of pension in the case of the employees who have retired prior to the date of effect of 8th CPC i.e., 01.01.2026 and also to consider the restoration of commuted value of pension after 11 years, enhanced pension by 5% once in 5 years from the date of retirement as recommended by the Parliamentary Standing Committee,” the federation wrote to Sitharaman.

Union says key ToR clauses on pay revision differ from the 7th Pay Commission

The ToR with regard to the revision of emoluments of employees is “totally different” from the ToR given to the 7th Central Pay Commission, said the federation. Here’s how it compared the two ToRs.

Terms of Reference of 8th CPC on Emoluments

“2.5. To work out an emolument structure conducive to attracting talent to Government service, promoting efficiency, accountability and responsibility in the work culture”.

Corresponding Terms of Reference (TOR) of 7th CPC on Emoluments

“2 c. To work out the framework for an emoluments structure linked with the need to attract the most suitable talent to Government service, promote efficiency, accountability and responsibility in the work culture, and foster excellence in the public governance system to respond to the complex challenges of modern administration and the rapid political, social, economic and technological changes with due regard to expectations of stakeholders, and to recommend appropriate training and capacity building through a competency based framework”.

The federation reminded the finance minister that the 7th CPC was explicitly asked to examine pension structures and revision guidelines for those who had retired before the implementation date of its recommendations. Since such a provision is missing in the 8th CPC’s ToR, AIDEF wants the government to issue an amendment.

It also requested the inclusion of long-pending issues such as restoring commuted pension after 11 years and introducing a 5% pension hike every five years after retirement — recommendations made earlier by a Parliamentary Standing Committee.