8th Pay Commission: Big news for central pensioners. The government has just put out the Terms of Reference (ToR) for the 8th Central Pay Commission (8th CPC). In response, the All India Defence Employees Federation (AIDEF) has voiced some concerns. They argue that 6.9 million central government pensioners and family pensioners have been left out of the 8th CPC’s scope.

AIDEF reached out to the Finance Ministry, stating, “It’s really unfortunate that pensioners who dedicated over 30 years to the country aren’t included in the 8th CPC’s limits. Pension revision is their right, and they shouldn’t face discrimination.”

So, why aren’t pensioners mentioned in the ToR?

The ToR released by the government on November 3, 2025, doesn’t specifically mention “pensioners” or “family pensioners.” However, it does indicate that the commission will assess salaries, allowances, and benefits for employees. This includes retirement benefits like pensions and gratuities. So, while pensioners aren’t technically excluded from the ToR, the absence of a clear reference has led to some confusion.

Which employees are included?

According to the ToR, the 8th Pay Commission will look into these groups:

– Industrial and non-industrial employees of the Central Government

– All India Services

– Defence Forces

– Employees of Union Territories

– Indian Audit and Accounts Department

– Regulatory bodies established by an Act of Parliament (excluding RBI)

– Supreme Court employees

– Staff of High Court employees of UTs

– Judicial officers of subordinate courts of UTs

What does the ToR say about pensions and retirement benefits?

The 8th Central Pay Commission is also responsible for reviewing the whole pension and gratuity structure. This covers two types of retirement benefits: Death-cum-Retirement Gratuity for those under the NPS and Unified Pension Scheme, and Gratuity and Pension for those outside the NPS. However, when making recommendations for the second category, the government must also take into account the financial costs of non-contributory pension schemes. This makes it clear that both pensions and gratuities are within the Commission’s scope, despite the absence of the word “pensioners” in the notification.