8th Pay Commission Big News: 10-Year Timeline To Change For 8CPC? New Concern For Salary, Pension Revision

8th Pay Commission: The implementation date of the upcoming 8th Pay Commission has become a cause of concern for more than 1 crore government employees and pensioners. Although recently, the Union Cabinet set a terms of reference (ToR) who will oversee the recommendations for 8th CPC, it was the missing timeline that sparked anxiousness. In general terms, the timeline to constitute new pay commission is once in 10-years. However, it could be possible that implementing 8th Pay Commission could be delayed!

Pay Commission Timeline:

Since past four decades, the timeline to constitute every new pay commission was once in 10 years, and the recommendations get effective after the same cycle. The new pay commission has been effective from January 1st during the 4th to 7th Pay Commission.

Check Past Dates Here:

Simply put, 7th Pay Commission is ending on December 31, 2025. This automatically leads to the implementation of 8th Pay Commission recommendations from January 1, 2026.

However, when the Cabinet set-up a temporary body, Terms of Reference (ToR), for 8th CPC, it said the recommendations should be submitted within 18 months of the date of its constitution. ToR may consider, if necessary, sending interim reports on any of the matters as and when the recommendations are finalized.

The ToR includes ne Chairperson; One Member (Part Time) and one Member-Secretary.

From this, it can be said that it will take another nearly 2 years for finally implementing 8th CPC.

Accordingly, representative bodies like All India Defence Employees Federation (AIDEF), Confederation of Central Government Employees & Workers (CCGEW) and Bharat Pensioners' Samaj (BPS) have urged the Finance Minister Nirmala Sitharaman and Prime Minister Narendra Modi to clarify over the alleged inconsistencies in the ToR for 8th CPC.

Bharat Pensioners Samaj (BPS), a unified, non-profit, non-political, and secular organization since 1955, also wrote to PM and FM.

Here's what BPS has urged the government:

1. Inclusion of the Date of Effect for 8th CPC Recommendations

It is now an established norm that the revision of Central Government employees' wages, allowances, and pensionary benefits takes place once every ten years, with a consistent implementation date.

"In view of this established precedent, it is both automatic and justified that the 8th CPC recommendations should be implemented w.e.f. 01.01.2026. We request that this date be formally included in the Terms of Reference of the 8th CPC," BPS said.

2. Revision and Parity in Pensionary Benefits

According to BPS, the existing ToR acks clarity on the revision of pension, parity, and other pensionary benefits for the current 69 lakh pensioners and family pensioners covered under the OldPension Scheme (OPS), Unified Pension Scheme (UPS), and National Pension Scheme (NPS).

Thereby, BPS urged the government, "To examine the principles which should govern the structure of pension and other retirement benefits, including revision of pension, parity in pension in the case of employees who have retired on any date (i.e., those who retired before 01.01.2026 or after 01.01.2026)."

3. Retirement Benefits:

Further, BPS stated that the 8th CPC should also be mandated to review and recommend changes to other retirement benefits, such as the restoration of the commuted value of pension after 11 years and the grant of additional quantum of pension/family pension once every 5 years from the date of retirement, as recommended by the Parliamentary Standing Committee.

4. Restoration of the Old Pension Scheme

Notably, approximately 26 lakh employees recruited after 01.04.2004, covered under the National Pension Scheme (NPS) or Unified Pension Scheme (UPS), are fervently demanding the restoration of the Old Pension Scheme (OPS) under CCS Pension Rules, 1972 (now 2021).

BPS appealed for the inclusion of a mandate in the ToR for the 8th CPC to examine the existing pension schemes and recommend the beneficial one, specifically addressing the demand for the restoration of the Old Pension Scheme.

5. Extension of 8th CPC Benefits:

As per BPS, the benefits of the 8th Central Pay Commission must be extended to centrally funded Autonomous and Statutory Bodies of the Government of India, as well as to the Gramin Dak Sevak (GDS), who serve as the backbone of the Postal Department.

6. Interim Relief:

Additionally, BPS requested the immediate grant of 20% as Interim Relief.

It said, "This is necessary to offset losses due to the delay in the constitution and implementation of the 8th CPC recommendations, mitigate the effects of inflation, and boost the morale of the approximately 1.2 crores of Central Government employees who are vital to the functioning of the government machinery."

8th Pay Commission Fitment Factor:

Among many recommendations under 8th CPC is also the fitment factor which will be crucial in deciding the new salaries and pensions for the employees.

As per Kotak Institutional Equities and Ambit Capital estimates, the fitment factor could range between 1.8 to 2.46. While some predict that the fitment factor could be at 2.57, which is the same as 7th Pay Commission.

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