Major staff organisations have raised concerns over the proposed Terms of Reference (ToR) for the 8th Central Pay Commission (CPC), citing gaps that overlook nearly 69 lakh central government pensioners and family pensioners. The Confederation of Central Government Employees & Workers (CCGEW), the All India Defence Employees Federation (AIDEF), and the Bharat Pensioners’ Samaj (BPS) have written to the Prime Minister urging immediate amendments.

The unions claim the current ToR lacks clarity on pension revision, pension parity, and the structure of future pension schemes.

Core objections: pensions treated as “fiscal burden”

Unions have criticised the ToR’s reference to the “unfunded cost of non-contributory pension schemes,” calling the term inappropriate, insensitive, misleading, and insulting to pensioners.

They emphasised that pensions are a constitutional right under Article 300A and a matter of socio-economic justice, not a fiscal burden or a “bounty”. The 8th CPC notification, they argue, fails to explicitly address pension revision for existing retirees—a provision included in the 7th CPC.

Concerns over implementation date

The absence of a clear implementation date has sparked further unease. Historically, recommendations from pay commissions (4th through 7th CPCs) were applied retrospectively from the scheduled date.

Unions insist the 8th CPC should take effect from 1 January 2026, following the 7th CPC’s end on 31 December 2025, to maintain the established decade-long cycle.

Pensioners demand financial and healthcare relief

Staff organisations have outlined several demands to safeguard financial security and welfare:

Immediate financial relief: 20% interim boost to support 1.2 crore serving employees, pensioners, and family pensioners amid rising inflation and pay commission delays.

Pension parity and revision: A clear mandate for CPC to examine and revise pensions, ensuring parity for all retirees, irrespective of retirement date.

Healthcare reforms: Major improvements to the Central Government Health Scheme (CGHS), including coverage for all autonomous body employees, new wellness centres at district level, and cashless treatment.

Additional benefits: Restoration of pension commutation after 11 years and additional increments every five years for senior citizens.

Future of pension schemes under scrutiny

Unions stress the need for a thorough evaluation of existing pension schemes. Around 26 lakh employees who joined after 1 April 2004 are dissatisfied with the New Pension Scheme (NPS) and Unified Pension Scheme (UPS).

They reiterate the call for restoring the Old Pension Scheme (OPS) and urge the 8th CPC to recommend the most beneficial options.

The benefits of the 8th CPC should also extend to employees of autonomous institutions, statutory bodies, and Gramin Dak Sevaks (GDS), described as the “backbone of the Postal Department” and integral to government service delivery.