A major controversy has erupted regarding the Terms of Reference (ToR) of the 8th Pay Commission.
Several central government employee organizations and trade unions claim that around 69 lakh pensioners have been excluded from the scope of the new commission.
They also point out that the ToR does not mention the date when the new pay recommendations will be implemented, which has created strong dissatisfaction among employees.
Many unions have opposed the government’s unilateral decision to form the new commission and prepare its framework without consultation.
They have also warned of protests. So far, the government has remained silent on these demands.
Expectations From the Winter Session
All attention is now on the winter session of Parliament starting December 1.
It is expected that Finance Minister Nirmala Sitharaman will clarify the government’s position on the 8th Pay Commission.
As seen in earlier sessions, several questions will be raised regarding the new pay commission, but this time MPs are likely to directly question the discrepancies in the ToR.
Apart from the ToR, long-pending concerns of central employees—such as pension reforms, DA, and other retirement benefits—may also become major discussion points.
Formation of 8th CPC and DA Merger: Main Issues
MP Anand Bhadoria has asked the government for written answers to two key questions:
The constitution of the 8th Pay Commission (8th CPC)
The decision to merge Dearness Allowance (DA) with basic pay
Hundreds of similar questions have already been submitted on the Lok Sabha and Rajya Sabha portals.
The current salary structure is based on the 7th Pay Commission, implemented from January 1, 2016. Historically, a new Pay Commission is set up roughly every ten years, meaning 2026 is
the expected year for the next commission’s implementation.
Nearly 1 crore central employees and pensioners are waiting for clarity from the government on the ToR controversy.
Allegations by Employee Unions
Unions claim that the government has intentionally excluded 6.9 million pensioners by altering the language of the ToR. They are waiting to see how the government responds to this charge.
Another major issue is the merger of DA and DR with basic pay. According to employee bodies, DA has not kept up with rising retail inflation over the past thirty years.
Since DA has now crossed 50%, they argue that an immediate DA merger should happen, as was mandatory earlier.
This merger would provide quick relief and also increase pensions and allowances.
Demands for Amendment in the ToR
Employee unions have recently intensified their agitation and threatened a coordinated nationwide movement. Their main demands include:
Abolish NPS/UPS and restore the Old Pension Scheme (OPS) for all
Improve the fitment factor
Merge DA immediately after it crosses 50%
Remove career stagnation by improving the pay matrix
Stop discrimination among pensioners
Remove the 5% limit on compassionate appointments
Fill all vacancies and stop outsourcing
Restore recognition of unions
Regularize contract workers
Implement pending arbitration awards
Unions warn that if the ToR is not corrected in time, the 8th Pay Commission may repeat the same flaws seen in earlier pay commissions.
