Big news has come out for government employees and pensioners. Minister of State for Finance, Pankaj Chaudhary, shared important information about the 8th Pay Commission in the Rajya Sabha on Wednesday. He said that many employee organizations have made important suggestions to the commission. These include demands like the restoration of the Old Pension Scheme (OPS) and an increase in the Standard Consumption Norms (SCN).

Demand for Old Pension Scheme Rises Again

The biggest demand from employee organisations is the return of the Old Pension Scheme (OPS). They want OPS to be restored especially for those who joined government jobs after 1 January 2004.

If the government accepts this demand, lakhs of employees will benefit. They will get a fixed and secure pension after retirement. Right now, under the New Pension Scheme (NPS), the pension amount depends on market returns. With OPS, employees can also choose the Unified Pension Scheme (UPS), where a fixed amount is deducted from their salary.

Recommendations to Increase Salary and Benefits

Organisations have also suggested raising the Standard Consumption Norm (SCN) from 3% to 3.6%. SCN decides how much income a person needs for basic food and needs. If this increases, the basic salary of employees may also rise.

Employee groups are also asking for the return of the education allowance for children and a cashless medical facility. This will help employees with school expenses and reduce the financial burden of treatment.

8th Pay Commission Implementation Timeline

The 8th Pay Commission was officially announced in January 2025. But its Terms of Reference (ToR) are yet to be decided. The commission will give its suggestions only after the ToR is finalized. The government has said that the recommendations will be applied from 1 January 2026. If there is a delay, employees and pensioners will receive arrears.

How Many People Will Benefit?

If the recommendations are accepted, around 35–45 lakh current employees and 68 lakh pensioners will benefit. This move is seen as positive for the government’s social and economic goals. It could also help the economy by increasing spending.

These suggestions have come from employee groups. The final decision will be taken by the government. But the Finance Minister’s statement in Parliament shows that the government is serious about the 8th Pay Commission. The process may move faster in the coming months.