Exclusion of Pension Revision from the 8th CPC’s Terms of Reference? Rajya Sabha Question Explained

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As the Winter Session of Parliament progresses, uncertainty is growing among Central Government employees and pensioners. All eyes are now on December 2, 2025, when the Ministry of Finance is scheduled to answer an important question in the Rajya Sabha regarding the newly constituted 8th Central Pay Commission (CPC).

The concern is centered around a single but highly impactful issue:
Has the government excluded pension revision from the 8th CPC’s Terms of Reference (ToR)?

Why This Question Matters

The 8th CPC was recently announced, and while the news was initially welcomed by employee unions, the published notification raised new worries. Unlike earlier Pay Commissions—where pension revision was explicitly included—the ToR of the 8th CPC does not clearly mention the same.

This omission has triggered anxiety among nearly 69 lakh Central Government pensioners, who fear that their pensions may not be revised at all under this CPC.

Breakdown of Rajya Sabha Question No. 252

The starred question submitted by Shri Javed Ali Khan and Shri Ramji Lal Suman seeks three important clarifications:

(a) Whether the government has issued the notification for constituting the 8th CPC, along with its Terms of Reference.

(b) Whether the government plans to merge existing DA/DR with basic pay as an immediate relief.

(c) Whether the 8th CPC excludes pension revision, and the reason for such exclusion.

These queries strike at the heart of the current confusion and reflect the concerns of millions of serving employees and pensioners.

The “Missing” Pension Mandate

Traditionally, every Pay Commission includes pension revision to ensure parity between old and new retirees. However, the 8th CPC’s notification introduced new wording regarding the “unfunded cost of non-contributory pension schemes,” raising fears that financial constraints may influence the decision to exclude pensioners from major benefits.

Employee unions warn that if pension revision is indeed excluded, it would be the first time in history that a Pay Commission denies pension updates, creating deep inequality between:

Current retirees
Past retirees with the same rank and service

This would widen the gap in pension amounts and undermine the long-standing principle of fairness.

DA Merger: The Immediate Relief Question

Another major point raised in the Rajya Sabha is regarding the merger of Dearness Allowance (DA) and Dearness Relief (DR) with basic pay.

Unions have repeatedly demanded DA merger once it crosses 50%, arguing that:

It increases take-home pay
It improves allowances linked to basic pay
It offers immediate relief in times of higher inflation

The government’s response on December 2 will determine whether this demand is accepted now or deferred until the 8th CPC’s final recommendations, expected by 2027.

Why Employees and Pensioners are Worried

If the government confirms that pension revision is outside the scope of the 8th CPC, it would mark a historic policy shift that directly affects social security for lakhs of pensioners.

Employee federations are already preparing for nationwide protests if the Ministry’s reply reinforces their fears.

For now, everything depends on the Ministry of Finance’s official answer during the Rajya Sabha session.