The Finance Ministry of India has finally addressed the concerns of nearly 70 lakh pensioners and more than 50 central government employees. The Ministry said the 8th Pay Commission will include pension revision in its mandate.
Earlier, the absence of explicit language and a missing reference in the notified Terms of Reference (ToR) brought trade unions on edge. This was primarily because every pay commission previously had clearly stated that both pensions and salaries would be revised. Thankfully, those fears have now been largely put to rest.
Minister of State for Finance Pankaj Chaudhary stated that just like earlier commissions, pension revisions will happen under the 8th pay commission.
DA–DR Merger Still Off The Table
The government reaffirmed its stance on merging Dearness Allowance (DA) and Dearness Relief (DR) with basic pay. It stated that no proposal for merging the existing DA with basic pay is currently under consideration. As a result, employees will need to wait until the 8th CPC submits its report, expected in 2027.
In India, authorities usually constitute pay commissions every 8–10 years, and their recommendations take about 2–4 years to implement. For example, the government established the 7th CPC in 2014 and implemented its recommendations in 2016.
What worried pensioners the most?
The apprehension was justified. Every Central Pay Commission (CPC) includes pension revision as an integral part to maintain parity between older and newer retirees. Without regular adjustments, older pensioners fall behind in income, widening the gap between batches and weakening the principle of parity.
The Finance Ministry’s clarification on the 8th Pay Commission reassures employees that the traditional framework remains intact. Even so, employee groups continue to demand clarity on compassionate appointments, NPS/UPS provisions, trade union rights, and the long-pending issue of DA arrears.
