8th Pay Commission: The central government has provided clarity on various pension-related inquiries concerning the 8th Central Pay Commission (8th CPC). This information was shared by Minister of State for Finance Pankaj Chaudhary in response to a question posed by Rajya Sabha MP Anand Bhadoria on Monday, February 9, 2026. The primary concern was whether employees who retired on or before December 31, 2025, would be eligible for revised pensions under the 8th Pay Commission, and if the Finance Bill 2025 allows the government to treat pensioners differently based on their retirement dates.
Government’s response on pension
In response, the Minister clarified that pensions are not directly determined or revised through the Finance Bill. The pensions of central government employees are regulated by the Central Civil Services (Pension) Rules, 2021, the Extraordinary Pension Rules, 2023, and various government orders issued periodically. Whenever a Pay Commission submits its recommendations and the government approves them, separate General Orders are issued. This indicates that pensions are not automatically adjusted solely based on the Finance Bill 2025.
Finance Minister clarified
The Finance Minister further explained that Part IV of the Finance Act, 2025 merely validates the current pension rules without altering them. This implies that there are no immediate changes to the existing civil and defense pensions. The Central Pay Commission serves as an expert body that recommends salaries, allowances, and pensions for various employee categories, but the government is responsible for implementing these recommendations through regulations.
Regarding the 8th Central Pay Commission, the government also provided an update on its formation. The Minister stated that on November 3, 2025, the government notified the formation of the 8th Pay Commission and its Terms of Reference (ToR). The Commission is required to submit its report within 18 months of its formation.
The Commission will make recommendations on all aspects of pay, allowances, and pensions for central government employees and pensioners. Currently, any pension revisions will only be made after the Commission’s recommendations are received and the government approves them.









