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8th Pay Commission: Unions Raise Alarm as 69 Lakh Pensioners Not Mentioned in ToR

Written by: Kusum KumariUpdated on: 19 Nov 2025, 3:49 pm IST
Unions warn that 69 lakh pensioners may be left out of 8th Pay Commission benefits as the Terms of Reference do not mention pension revision or key retirement benefits.
8th Pay Commission
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The Central government recently notified the 8th Pay Commission (8th CPC) along with a 3-member panel led by Justice Ranjana Prakash Desai. The Commission will review and recommend pay and pension structures for over 1 crore central government employees and pensioners. However, employee unions have raised serious concerns about gaps in the Terms of Reference (ToR), especially the absence of any mention of 69 lakh pensioners.

Unions Raise Concerns Over 8th CPC ToR

After the All India Defence Employees' Federation (AIDEF) highlighted issues in the ToR last week, another major union, the Confederation of Central Government Employees & Workers (CCGEW), has now written to Prime Minister Narendra Modi seeking amendments.

CCGEW represents nearly 8 lakh employees from departments like Posts, Income Tax, Audit, ISRO, CPWD, and others. The union claims that many essential points affecting employees and pensioners have not been included.

Key Concerns Mentioned in the Union’s Letter

1. No Clarity on 69 Lakh Pensioners

The unions say the ToR does not clearly mention how the Pay Commission will handle:

  • Pension revision
  • Parity in pension
  • Restoration of commuted pension
  • Benefits for pensioners under OPS, UPS, and NPS

This has created fear that 69 lakh existing pensioners and family pensioners may not be covered.

2. Changes Needed in Pension-Related Terms

The CCGEW has demanded:

  • Removal of the phrase “unfunded cost of non-contributory pension schemes”
  • Review of retirement and pension benefits, including restoring the commuted pension after 11 years
  • Additional pension every 5 years, as recommended by the Parliamentary Committee
  • Better healthcare facilities for pensioners
  • Review of the CGEGIS scheme for both employees and pensioners

Concerns Raised Earlier by AIDEF

AIDEF had already written to Finance Minister Nirmala Sitharaman, raising 2 major concerns:

  • The ToR does not mention the date of implementation of the pay panel’s recommendations, unlike previous commissions.
  • The absence of pension-related guidelines is “unfair and unjustified” to nearly 69 lakh pensioners.

They also warned that the government may be considering a change to the long-standing practice of revising pay every 10 years.

Read More: 8th Pay Commission: What’s Driving Expectations of a 1.8–2.57 Fitment Factor?

Conclusion

Employee unions believe that the current 8th Pay Commission Terms of Reference leave out crucial pension-related issues, especially for 69 lakh pensioners. They have urged the government to revise and expand the ToR to ensure fair treatment for both serving employees and retirees. All eyes are now on whether the Centre will address these concerns before the Commission begins its detailed work.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Published on: Nov 19, 2025, 10:14 AM IST

Kusum Kumari

Kusum Kumari is a Content Writer with 4 years of experience in simplifying financial market concepts. Currently crafting insightful content at Angel One, She specialise in breaking down complex topics into easy-to-understand pieces, blending expertise in market fundamentals and technical analysis.

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