8th CPC: Exclusion of pension revision from the Terms of Reference (ToR) of 8th Central Pay Commission
Anxiety is growing among central government employees and pensioners as the Winter Session of Parliament continues. Everyone is focused on next Tuesday, December 2, 2025, when the Ministry of Finance is set to address an important question in the Rajya Sabha about the recently formed Eighth Central Pay Commission (CPC).
The question, listed as No. 252 by MPs Shri Javed Ali Khan and Shri Ramji Lal Suman, hits at the core of a rising controversy: the supposed exclusion of pension revision from the 8th CPC’s Terms of Reference (ToR).
The “Missing” Mandate
The government recently announced the formation of the 8th CPC, a move that central staff unions initially welcomed. However, the details in the notification have caused widespread concern. Unlike previous commissions, which clearly included “revision of pension” for current pensioners, the 8th CPC’s ToR is unclear on this matter.
Details of Rajya Sabha Question:
Constitution of Eighth Pay Commission252 Shri Javed Ali Khan: Will the Minister of Finance be pleased to state: (a) whether Government has issued notification for constitution of Eight Central Pay Commission (CPC) recently, the details thereof along with Terms of References (TOR); (b) whether Government would merge the existing DA/DR with basic pay as an immediate relief measure for Central Government employees/pensioners, if so, the details thereof, if not, the reasons therefor; and (c) whether revision of pension of Central Government employees is not proposed under eight CPC, the reason therefor |
The Rajya Sabha question specifically seeks clarification on:
Part (b) Whether Government would merge the existing DA/DR with basic pay as an immediate relief measure
Part (c): Whether it is true that the revision of pension is not proposed under the 8th CPC and the reasons for such a significant break from tradition.
Union leaders worry that the government may be heading toward a system where only active employees receive pay revisions, leaving nearly 69 lakh pensioners stuck with outdated pension formulas. The introduction of new language in the ToR about the “unfunded cost of non-contributory pension schemes” has further sparked fears that financial factors are taking precedence over social security.
DA Merger: The Immediate Relief Question
Beyond the long-term issues concerning the Pay Commission, MPs have also requested answers about immediate relief measures. Part (b) of the question asks whether the government plans to merge the existing Dearness Allowance (DA) and Dearness Relief (DR) with basic pay.
With inflation remaining high, unions have long argued that once DA surpasses the 50% mark—which it has—it should be merged with basic pay to provide immediate cash flow and enhance allowances. The government’s response on December 2 will clarify whether such short-term relief is coming or if employees will have to wait for the final 8th CPC report, expected by 2027.
Why This Matters
If the government confirms that pension revision is outside the 8th CPC’s scope, it would represent a historic change in how India treats its retired civil servants and defense personnel. Typically, Pay Commissions ensure fairness between past and current retirees. Removing this connection could lead to a situation where older retirees receive much lower pensions than younger ones for the same rank and service.
As the date for the answer draws near, employee confederations are reportedly getting ready for nationwide protests if the Ministry’s response aligns with their worst fears.
Source: Rajya Sabha Question List.
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