8th Pay Commission- The 8th Pay Commission was announced by the government on 16 January 2025. Its likely date of implementation is considered to be 1 January 2026. This commission can open the way for increase in salary and pension for lakhs of central government employees and pensioners.
Appointment of chairman and members is pending, TOR is also not decided
However, the Commission’s chairman, members and detailed scope of work (Terms of Reference – ToR) have not been formally announced yet. The process is currently in its initial stages.
Pension should be restored in 12 years
Employees and pensioners have made several important demands from the 8th Pay Commission. The most important demand is that the period for restoration of commuted pension be reduced from 15 years to 12 years. This issue has been raised before the government by the National Council (JCM) – Staff Side. This demand was also raised in the meeting of SCOVA (Standing Committee on Voluntary Agencies) held on 11 March 2025. This meeting was chaired by the Minister of State for Personnel.
What is commuted pension?
At the time of retirement, employees can take a part of their monthly pension as a lump sum. After this, the government deducts that amount from their pension every month. Currently, this deduction continues for 15 years. After this, full pension is restored. Employee unions and pensioners argue that a 15-year period is too long, especially when medical costs and inflation are constantly rising. Also, retirees suffer financial losses due to falling interest rates.
There may be a delay in implementation
Although earlier it was to be implemented from January 1, 2026, but according to reports, the implementation of the 8th Pay Commission may be delayed. At present discussions are going on and no final date has been announced by the government.