After 10-Month Delay, Giving Another 18 Months to 8th Pay Commission Is Not Justified: C. Srikumar

OPINION PIECE

After a long wait, the Union Cabinet chaired by Prime Minister Narendra Modi has approved the constitution and Terms of Reference (ToR) of the 8th Central Pay Commission (CPC). Justice Ranjana Prakash Desai, former Judge of the Supreme Court of India, has been appointed as Chairperson. Professor Pulak Ghosh of IIM Bengaluru will serve as the Part-Time Member, while Pankaj Jain, Secretary, Ministry of Petroleum and Natural Gas, will be the Member-Secretary.

The Commission has been allotted 18 months from the date of its constitution to submit its recommendations, and it is authorized to provide interim reports. The government’s press release emphasizes that the ToR focus on maintaining fiscal prudence, ensuring adequate resources for development, and managing expenditure and welfare. It also instructs the Commission to consider the unfunded cost of the non-contributory Old Pension Scheme (OPS) — a move seen by unions as a restriction on pay and pension enhancement.

AIDEF’s Protest and Response

Due to the government’s delay in notifying the 8th CPC, the All India Defence Employees’ Federation (AIDEF), one of the major federations of Central Government employees, had earlier observed an “All India Protest Day” across more than 400 defence establishments, demanding immediate notification of the Pay Commission and the lifting of the ban on compassionate appointments.

Following the Cabinet decision, C. Srikumar, General Secretary of AIDEF, told www.indianpsu.com – “It has taken more than 10 months for the Government of India to take a decision about the constitution of the Commission and its Terms of Reference. Now, even after such a long delay, the Government has given the Commission another 18 months for submitting its report. This is not justified,” said C. Srikumar.

If the notification is issued on 1st November 2025, the Commission will have time until March 2027 to submit its report. “After that, the Government usually takes at least six months to study and decide on implementation, which means Central Government employees and pensioners may have to wait for two more years to get their wages and pensions revised,” he added.

Comparison with Previous Pay Commissions

C. Srikumar recalled that the 7th Central Pay Commission was constituted by the Manmohan Singh Government in 2014 — two years before its implementation in 2016. “Ten years is already a long period for wage and pension revision. From the 4th CPC onwards, it has been a practice that Pay Commission recommendations are implemented every ten years. Extending this process further is unfair,” he said.

He further pointed out that the 7th CPC Terms of Reference included clear principles for pay structure, allowances, and benefits linked to attracting and retaining talent, ensuring efficiency, and addressing technological and economic changes. “However, the 8th CPC’s ToR seem entirely focused on economic conditions and fiscal constraints rather than employee welfare and fair pay revision,” Srikumar said.

Concerns Over Pension and Independence

He also expressed concern over the Terms of Reference mentioning the “Unfunded Cost of the noncontributory Pension Scheme” which indicates that the existing Pensioners are not going to get a fair treatment from the 8th Central Pay Commission and also that the Government is not going to restore the Old Pension Scheme. These Terms of Reference as per the press release issued by the Government only tighten the hands of 8th CPC on the plea of economic conditions and fiscal prudent and the Commission how far will be able to function as an independent wage revision body is a big question mark, despite chaired by a retired Supreme Court Judge.

AIDEF’s Next Steps

C. Srikumar emphasized that AIDEF will now demand the merger of 50% DA with Basic Pay, interim relief, and push strongly before the 8th CPC for withdrawal of the National Pension System (NPS) and restoration of OPS, even if these are not included in the official ToR.

“We will prepare a detailed memorandum and forcefully place our views before the 8th CPC,” he concluded.

Views expressed here are those of C. Srikumar, veteran trade union leader and General Secretary of AIDEF