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8th Pay Commission: Govt gets staff wish list

Business Standard

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July 23, 2025

Finalising panel's terms of reference for hikes, which may kick in from Jan

- Ruchika Chitravanshi & Asit Ranjan Mishra

Six months after the government announced plans to set up the Eighth Central Pay Commission to review its employees' emoluments, it has received suggestions from staff representatives for the panel's consideration.

These suggestions include reinstating the Old Pension Scheme for government employees who joined service after 2004 and improving other retirement benefits, devising methods to ensure cashless medical benefits to employees and pensioners, and providing a child education allowance as well as a hostel subsidy till the post-graduation level.

The panel's recommendations would impact around 4.5 million government employees and 6.8 million pensioners, including defence personnel.

While the government is yet to notify the Commission, whose recommendations are to take effect from January 1, 2026, it has set the ball rolling to finalise the panel's terms of reference by seeking inputs from major stakeholders, including the States, and the Union Ministries of Defence, Home Affairs, and Personnel.

Staff representatives' pitches for the terms of reference are already in, Minister of State for Finance Pankaj Chaudhary said in response to a question in the Rajya Sabha on Tuesday. The minister also shared a copy of the suggestions received from the National Council of Joint Consultative Machinery (NC-JCM), chaired by Cabinet Secretary T V Somanathan.

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