8th Pay Commission Update: Ministry of Finance Confirms Various Pension Revisions.

The payment revision for central government employees and pensioners of nearly 7 million has been a matter of contention, which has finally been resolved when the Finance Ministry has directly stated that the 8th Pay Commission will include pension revision as one of its scopes. The employees and pensioners have been in fear of their pensions' future as a week-long speculation due to the absence of a reference in the notified Terms of Reference (ToR) had set the scenario.

Finance Ministry Gives Reassurance

Pankaj Chaudhary, Minister of State for Finance, during an Unstarred Question in the Rajya Sabha, said: “The Eighth CPC will make its recommendations on the various issues including Pay, Allowances, Pension, etc. of the central government employees.” This official declaration has taken away the fear of exclusion of pensions, a fear which had existed among unions and retiree groups since the ToR was released on 3 November 2025.

The Question of Pension Revision

The suspicion stemmed from the fact that the ToR did not state pension updates and included mentions of the “unfunded cost of non-contributory pension schemes.” The majority were of the opinion that the government might prioritize fiscal over welfare commitments, thus causing disparities in the income of the working employees and retirees.

With this confirmation, the pensioners are reassured that the periodic revisions will persist to ensure equity and to eliminate the discrepancies among the retirees.

DA-DR Merger Still Awaiting Decision

Pensions are indeed safe but one more major demand is still pending and that is the merging of Dearness Allowance (DA) and Dearness Relief (DR) into basic pay. The government has conveyed that there is “No proposal regarding merger of the existing DA with Basic Pay is under consideration at present” even amidst the increasing demands. This topic may only be revisited once the 8th CPC report, which is slated to be completed by 2027, is submitted.

Implications for Pensioners and Employees

The finance ministry's clarification comes as a significant check for the pensioner’s reassurance, making sure of the stability and fairness of income through generations of retirees. Worker associations keep a watch on the other pending issues, including NPS/OPS issues, compassionate appointments, and DA arrears, but at least the question of pension revision is now definitively resolved.