8th Pay Commission: A major controversy has erupted over the 8th Pay Commission’s Terms of Reference (ToR). Several employee organizations and trade unions affiliated with the central government have alleged that the government has delayed the implementation of the new pay scales for approximately 6.9 million pensioners.
8th Pay Commission: A major controversy has erupted over the Terms of Reference (ToR) of the 8th Pay Commission. Several employee organizations and trade unions affiliated with the central government have alleged that the government has excluded approximately 69 lakh pensioners from the purview of the new pay commission. Also, there is no mention of the date of implementation of the recommendations in the ToR, which has caused deep resentment among the employees. Several unions have objected to the government’s unilateral formation of a new pay commission and the preparation of a blueprint for it and have also threatened protests. However, the government has maintained complete silence on these demands so far.
All eyes are now on the Winter Session of Parliament, which begins on December 1st.
All eyes are now on the Winter Session of Parliament, which begins on December 1st. Finance Minister Nirmala Sitharaman is expected to clarify the government’s stand on this issue. As in previous sessions, many questions will be raised regarding the 8th Pay Commission, but this time, MPs are likely to directly raise questions, particularly regarding the discrepancies in the ToR. Not only the ToR, but also several long-pending demands of central employees, such as pension, DA, and other retirement benefits, could become major issues in this session.
Formation of the 8th CPC and DA Merger Key Issues
MP Anand Bhadauria has sought written answers from the government on two important questions:
1. Formation of the 8th Pay Commission
2. The decision to merge the Dearness Allowance (DA) with the basic pay
Hundreds of such questions have already been uploaded to the Lok Sabha and Rajya Sabha portals. The current pay structure is based on the 7th Pay Commission, which came into effect on January 1, 2016. History shows that a new Pay Commission is constituted every decade. Based on this, 2026 is the natural year for the implementation of the new Pay Commission. Nearly 10 million central employees and pensioners are now awaiting the government’s response to clarify its position on the ToR dispute.
Unions’ Allegations
Unions allege that the government has deliberately excluded 6.9 million pensioners by changing the language in the ToR. All eyes are now on the government’s response to this allegation. Another major controversy concerns the merger of dearness allowance (DA) and dearness relief (DR) into basic pay. Employee organizations say that over the past three decades, the DA has failed to keep pace with retail inflation. The DA has risen above 50%, which used to be a mandatory requirement for DA merger. The DA merger provides immediate relief and also increases pensions and other allowances.
Demand for amendment of the ToR
Unions have intensified their protests over the past few weeks and have warned the government of a coordinated nationwide movement. Their key demands include:
– Abolish NPS/UPS and reinstate OPS for all.
– Improve the fitment factor.
– Immediate DA merger if DA exceeds 50%.
– Eliminate career stagnation by improving the pay matrix structure.
– End discrimination against pensioners.
– Remove the 5% limit on compassionate appointments.
– Fill vacancies and prevent outsourcing.
– Recognition of unions should be restored.
– Regularize contract employees.
– Implement pending arbitration awards.
Unions say that if the ToR is not revised in time, the 8th Pay Commission could repeat the anomalies of previous commissions.
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