There is good news for government employees. Work has started on the 8th Central Pay Commission, which will be active from January 1, 2026. According to a report by Business Standard, employee groups have given a long list of their demands to the government. They have requested the government to look into these demands. The main demands include bringing back the old pension scheme, cashless medical treatment, help with children’s education and hostel fees, and special allowance and insurance for workers doing risky jobs. The recommendations of this commission will affect around 45 lakh employees and 68 lakh pensioners, including people from the defense and paramilitary forces.
Demand to Bring Back the Old Pension Scheme
The biggest demand from employees is that those who joined after 2004 should also get the benefits of the Old Pension Scheme (OPS). Right now, they are under the New Pension Scheme (NPS), which gives less pension and is based on contribution. Employees want a fixed and secure pension after retirement, like before. They also want the pension amount to increase every 5 years and equal benefits for both old and new pensioners.
Request for Completely Cashless Medical Treatment
Employees have also raised concerns about medical treatment. Many employees and pensioners still have to pay from their own pockets and face long delays in getting refunds. They are asking the government to start a fully cashless medical facility. Retired employees receiving pensions should also get the same benefits. The system needs to be improved, especially for retired postal department staff.
Support for Children’s Education
With the rising cost of education, employee unions say the government should help with children’s education expenses. They are asking for an education allowance for all employees. If a child studies in a hostel, hostel subsidy should also be given. This support should continue till post-graduation, so that children can complete their higher education without problems.
Risk Allowance and Insurance for Dangerous Work
There is a demand to give special risk allowance and insurance to employees working with dangerous materials like weapons, chemicals, acids, and explosives. Railway employees have also asked for risk and hardship allowance. These employees work in unsafe conditions every day and want fair compensation for their hard work and risk.
Changes Demanded in MACP Scheme
MACP, or Modified Assured Career Progression, helps employees who don’t get promotions for a long time. Now, employees want this scheme to include Gramin Dak Sevaks, Paramilitary Force jawans, and workers in autonomous government bodies. They also want old, outdated pay scales to be removed and replaced with a new, fair scale.
Proposal to Set New Spending Standards
Employee groups have suggested increasing the Standard Consumption Unit (SCU) from 3 to 3.6. This unit helps calculate daily needs and is used to set minimum wages and government expenses. If this is accepted, government spending will rise, and starting salaries could be increased.
Government is Reviewing Suggestions
The government has not yet officially set up the 8th Pay Commission but has started preparing the Terms of Reference (ToR), which defines the commission’s work. Minister of State for Finance Pankaj Chaudhary told Parliament that the suggestions from employees have been noted. The Department of Personnel (DoPT) and the Department of Expenditure will review the inputs and send the final draft to the Cabinet.
It is important to note that the 7th Pay Commission, implemented in 2016, added about ₹1 lakh crore to the government’s expenses. This time, the government will need to find a balance between employee demands and the budget.