Pension Revision Update: Pensioners Receive Major Relief, Government Responds

Pension Revision Update: Following the formation of the Eighth Pay Commission, central employees and pensioners are now eagerly awaiting its recommendations. The Commission is expected to submit its report to the government within the next 18 months. Meanwhile, employees and retirees are raising numerous questions regarding salaries and pensions. In particular, there is curiosity about when and how pension changes will be implemented. The government has clarified its position on this issue.

What the Government Said

In response to a question in the Rajya Sabha, Minister of State for Finance Pankaj Chaudhary clarified that pensioners who retired on or before December 31, 2025, do not automatically receive the right to revised pensions. He explained that pension changes only become effective when the central government formally approves the Pay Commission’s recommendations and then issues a separate order implementing them.

This means that until the government accepts the Eighth Pay Commission’s recommendations and issues a notification implementing them, the existing pension rules will remain in effect. Pensions are not automatically revised simply by the passage of a financial law.

Under Which Rules Is Pension Granted?

The government also clarified that the pension system for central government employees and pensioners is governed by the Central Civil Services (Pension) Rules, 2021, and the Extraordinary Pension Rules, 2023. In addition, guidelines issued from time to time also apply. The Minister clarified that no financial bill or act automatically changes the calculation, structure, or eligibility of pensions.

When Was the Eighth Pay Commission Formed?

The formation of the Eighth Pay Commission was announced in January and officially notified in November 2025. The Commission has been given 18 months to submit its recommendations regarding the salaries, allowances, and pensions of central government employees and pensioners.

Everyone is certainly wondering what recommendations the commission will make and when the government will implement them. A formal order has also been issued stating that until then, pensioners will continue to receive benefits under the same system.