The 8th Central Pay Commission is nearing the halfway point of its 18-month tenure as it continues consultations with stakeholders across the country. Having completed visits to Kolkata and Bhubaneswar in July, the Commission is expected to hold further discussions in other states before finalising its recommendations.
Constituted on 3 November, 2025, the Commission is tasked with reviewing pay, allowances and pension-related benefits for Central government employees and pensioners.
One of the key issues under discussion is the future of the government’s pension framework. While employee and pensioner unions continue to press for the restoration of the Old Pension Scheme (OPS), the Commission’s Terms of Reference (ToR) focus on reviewing benefits available under the National Pension System (NPS) and the Unified Pension Scheme (UPS).
The Gazette notification issued by the Centre directs the Commission to examine gratuity and pension benefits for employees covered under NPS and UPS, while also reviewing provisions applicable to employees outside these schemes. It also calls for an assessment of the financial implications of non-contributory pension systems. However, the notification does not include any mandate to replace NPS or UPS with the Old Pension Scheme.
Meanwhile, employee organisations have reiterated their demand for the restoration of OPS. In its memorandum to the Commission, the Staff Side of the National Council–Joint Consultative Machinery (NC-JCM) urged the government to roll back both NPS and UPS, arguing that retirement benefits linked to market performance create uncertainty for employees who joined government service after 1 January, 2004.
The employee body also highlighted the limited adoption of the Unified Pension Scheme, noting that around 1.22 lakh employees—about 4.5 per cent of nearly 26 lakh NPS subscribers—have opted for the scheme since its introduction.
Pensioners’ associations have echoed similar concerns, calling either for the reinstatement of OPS or for stronger safeguards, including a guaranteed minimum pension and higher government contributions. However, these demands extend beyond the current mandate of the 8th Pay Commission, which is focused on reviewing and strengthening the existing pension framework rather than replacing it.
