8th Pay Commission Terms of Reference Approved by Union Cabinet
The Union Cabinet has formally approved the Terms of Reference (ToR) for the 8th Central Pay Commission, marking a significant step in the government’s ongoing efforts to revise salary structures for central government employees. The Finance Ministry notified the resolution on November 3, 2025, establishing the commission as a temporary body. The panel will consist of three members: Justice Ranjana Prakash Desai as chairperson, Prof. Pulak Ghosh as a part-time member, and Pankaj Jain as member-secretary. The ToR outlines the commission’s mandate to review pay scales, allowances, and other benefits, but has sparked controversy over its exclusion of a significant segment of the workforce.
Employee Federation Raises Concerns Over Pensioner Exclusion
The All India Defence Employees’ Federation (AIDEF) has raised a critical objection, highlighting that nearly 69 lakh central government pensioners and family pensioners are excluded from the commission’s purview. In a letter to Finance Minister Nirmala Sitharaman, the federation emphasized that these retirees, who have dedicated decades of service to the nation, are being overlooked. The AIDEF argues that the exclusion is unjust, as pension revision is a fundamental right for retired personnel. The federation has called for amendments to the ToR to ensure these pensioners are included in the review process, advocating for equitable treatment and recognition of their contributions.
Call for Pension Revisions and Enhanced Benefits
The AIDEF has outlined several key demands, including the restoration of commuted pension values after 11 years and a 5% annual increment in pension for retirees. The federation also seeks the reinstatement of the Non-Contributory Pension scheme under the CCS Pension Rules 1972 (revised 2021), which has been a long-standing demand among over 26 lakh employees. Additionally, the federation criticizes the ToR for the 8th CPC, arguing that it diverges from the framework used for the 7th Commission. They urge the government to revise the ToR to align with historical precedents and address the concerns of retired employees, who constitute a significant portion of the workforce.
Disparities in Emoluments Review and Legal Recourse
The AIDEF has further highlighted the disparity in how emoluments are addressed between the 7th and 8th Pay Commissions. The federation asserts that the 8th CPC’s ToR lacks provisions for revisiting the financial entitlements of retired personnel, unlike its predecessor. Legal experts suggest that the exclusion of pensioners could lead to prolonged disputes, as the Supreme Court has previously ruled that the government must ensure equitable treatment for all citizens, including retirees. The federation is also advocating for a legal framework to enforce these revisions, emphasizing the need for a balanced approach that acknowledges the service of pensioners while addressing the financial sustainability of the pension system.
Broader Implications for Government and Public Trust
The controversy surrounding the 8th Pay Commission’s ToR underscores the broader challenges of balancing fiscal responsibility with social equity. Critics argue that excluding pensioners from the review could erode public trust in the government’s commitment to fair treatment of all citizens. Analysts suggest that the resolution of this issue will depend on the government’s willingness to engage with stakeholders and adopt a transparent process. As the commission moves forward, the inclusion of pensioners in its mandate may become a critical factor in determining its success and the long-term stability of the pension system. The outcome will also influence future labor policies and the perception of the government’s responsiveness to the needs of its retired workforce.
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