8th Pay Commission Sparks Outrage: Why Are Pensioners Suddenly Left Out?

8th Pay Commission: Pensioners Left Out, Union Seeks Inclusion in Panel’s Scope

The government’s release of the Terms of Reference (ToR) for the 8th Central Pay Commission (CPC) has triggered concern among central government employees and pensioners. Many unions have expressed unhappiness after noting that pensioners, who were under the previous commission's jurisdiction, had been excluded this time.

One of the main demonstrators has been the All India Defence Employees Federation (AIDEF), which represents civilian Ministry of Defense employees. The union urged the Center to amend the ToR and ensure that pensioners are covered in a letter to Finance Minister Nirmala Sitharaman.

Department of Expenditure’s official website: https://doe.gov.in

Union Flags Missing Pension Clause

According to AIDEF, the government’s move has disappointed nearly 69 lakh central government pensioners and family pensioners. The federation said that these individuals had dedicated decades of service to the nation and deserve fair consideration in pay and pension revisions.

The AIDEF pointed out that:

• The 8th CPC’s ToR does not include any mention of pension revision.

• This clause was present in the 7th CPC’s ToR, under section 2(f), allowing the commission to review and revise pensions for those who retired before the implementation of new recommendations.

• The absence of this provision now means that lakhs of retired employees may not receive any benefit from the upcoming pay revisions.

The letter addressed to the Finance Ministry described the exclusion as “most unfortunate” and “totally unjustified.” The union emphasized that revising pensions is a right, not a privilege, especially since most pensioners are elderly and depend heavily on government support.

AIDEF has requested that the government:

• Restore the pension revision clause similar to the 7th CPC.

• Allow restoration of commuted pensions after 11 years instead of the current 15 years.

• Implement a 5% pension increase every five years, as recommended by a Parliamentary Standing Committee earlier.

Differences b/w 7th and 8th Pay Commission ToR

The AIDEF also highlighted several differences between the ToR of the 7th and 8th Pay Commissions, noting that the latest document narrows its focus.

Changes observed include:

• The 8th CPC’s ToR mentions: “To work out an emolument structure conducive to attracting talent to Government service, promoting efficiency, accountability and responsibility in the work culture.”

• In contrast, the 7th CPC’s ToR had a broader statement that included “stakeholders’ expectations” and “excellence in the public governance system.”

According to the union, dropping these phrases weakens the scope of the commission and signals a shift away from employee and pensioner welfare.

AIDEF believes that excluding the phrase “stakeholders’ expectations” reduces the commission’s responsibility to consider feedback from employees, pensioners, and the general public who are affected by these policy changes.

Growing Demand for Revision

This issue is gaining traction among other employee federations as well, who argue that leaving out pensioners could cause dissatisfaction among millions of former government workers.

The 8th CPC, headed by Justice Ranjana Prakash Desai, has been tasked with reviewing pay structures for central government employees. However, many believe the omission of pensioners could set an unfair precedent.

Unions are urging the Centre to amend the ToR before the panel begins its formal review so that both serving and retired government personnel receive fair treatment.

Conclusion

The 8th Pay Commission’s Terms of Reference have sparked a strong debate among employees and pensioners alike. The AIDEF’s appeal highlights a growing concern that the new framework does not uphold the inclusive approach seen in earlier commissions.

If the government revises the ToR to include pensioners, it would not only restore faith among retired employees but also reaffirm the Centre’s commitment to fairness and welfare for all who have served the nation. For now, lakhs of pensioners are waiting to see if their voices will be heard before the commission begins its detailed work.