8th Pay Commission Terms of Reference concerns: Central government employees and pensioners are worried about some key anomalies in the recently notified Terms of Reference (ToR) for the 8th Central Pay Commission (CPC). Many employee unions have written to the government highlighting how the 8th Pay Commission ToR deviated from the previous commission’s ToR in terms of clarity on some key provisions.
Various labour unions and central employees’ representatives have their reservations on certain issues, including exclusion of pay revision and missing clarity on pensions, NPS/UPS, DA arrears, compassionate appointments and trade union rights.
Now, as the Winter Session of Parliament is all set to begin from December 1, employees and pensioners are eagerly awaiting some clarity from the government through the questions to be asked by many Lok Sabha and Rajya Sabha MPs.
Next week, the Ministry of Finance will give some clarity on some of these key issues pertaining to the 8th pay panel.
In one of the questions posted on the Rajya Sabha website in questions’ list, parliamentarians Javed Ali Khan and Ramji Lal Suman have asked: Has pension revision been left out of the 8th CPC’s Terms of Reference (ToR)?
Why the ToR is under scrutiny
The government recently notified the constitution of the 8th CPC. While this was initially welcomed by staff unions, the fine print in the notification has created discomfort.
In previous Pay Commissions, the mandate clearly included revision of pension for existing pensioners. This time, the ToR appears silent or unclear, triggering fears that pension revision may not be part of the Commission’s work.
The Rajya Sabha question directly asks the government to clarify whether pension revision is “not proposed” under the 8th CPC, and if so, the reasons behind such a major departure from past practice.
DA–DR merger: Another key issue
The MPs have also sought clarity on another long-pending demand:
Will the government merge Dearness Allowance (DA) and Dearness Relief (DR) with basic pay as an immediate relief measure?
With DA already above the 50% mark and inflation still high, employee unions argue that a DA merger would help improve take-home pay and allowances. The Finance Ministry’s response on Tuesday will indicate whether such relief is being considered or deferred until the final 8th CPC report, expected in 2027.
Why pensioners are worried
Almost 69 lakh pensioners depend on periodic pension revision to maintain parity with serving employees. If the government confirms that the 8th CPC will not handle pension revision, it would mark a historic shift in how retired staff are treated.
Unions fear this could widen the gap between older and newer retirees and weaken the long-established system where Pay Commissions safeguard fairness across generations.
Adding to the concern is the ToR’s reference to the “unfunded cost of non-contributory pension schemes.” Pensioner groups say this wording suggests that financial pressure may be outweighing social security considerations.
8th Pay Commission: What happens next
Meanwhile, employee federations are preparing to intensify their agitation if the government’s reply on December 2 confirms their fears. For now, workers and pensioners are waiting for clear answers — especially on two critical issues: Will pensions be revised under the 8th CPC, and will DA/DR be merged with basic pay anytime soon?
