News for Central Government Employees: Work on the 8th Pay Commission is progressing rapidly. The Commission is holding daily meetings in various cities to discuss salary and pension matters with employees. Amidst these developments, there is significant discussion among employees regarding the fitment factor, allowances, and pensions.
In addition to the fitment factor, salary revision, and allowances, these meetings are addressing the issue of OPS (Old Pension Scheme) versus NPS (New Pension Scheme). Central government employees who joined service after 2004 and pensioner associations are now adamant in their demand for a guaranteed pension. Let us examine the demands that retired employees have made.
Demand for OPS
It is worth noting that employees across the country do not appear satisfied with the NPS scheme introduced for those recruited after 2004. In a note submitted to the 8th Pay Commission, employee unions have clearly stated that the current market-linked return schemes are completely inadequate in providing financial security for their families’ futures. Employees are demanding the restoration of the OPS; they are calling for the full reinstatement of the Old Pension Scheme.
Demand for Minimum Pension
Pensioner associations have demanded a revision of the minimum pension. They have recommended raising the minimum pension to ₹45,000 per month, setting it at 67% of the last drawn salary, and fixing the family pension at 50% of the last drawn salary.
When will the recommendations be implemented?
The Pay Commission is visiting various zones across the country to hear from all stakeholders. Memorandums have been submitted during these meetings regarding issues such as increasing the fitment factor, raising the minimum salary, and ensuring pension parity.
The Commission is expected to submit its report to the Central Government by May-June 2027. Once the report is submitted and the government approves the recommendations, they will be implemented. Subsequently, it will be decided whether pensions will be increased threefold and whether the demand for the Old Pension Scheme (OPS) will intensify. It remains to be seen whether the lakhs of employees recruited after 2004 will receive the benefits of the OPS.