The 8th Pay Commission is no longer a mystery for the government. The Ministry of Finance assured that the 8th Central Pay Commission (8th CPC) will be composed of not only new pay and allowances but also pension revision for the retired central government employees as well.

The retirees and the staff groups were particularly apprehensive, as the terms of reference (ToR) for the Commission released in November 2025 did not spell out pension revision. This silence was the cause of heavy anxiety for the retirees.

What Has the Government Decided?

In a written answer in the Rajya Sabha, the government announced that the 8th Pay Commission would treat the review of pensions together with that of regular salaries and allowances.

Still, on one of the key demands involving merging Basic Pay with Dearness Allowance (DA) or Dearness Relief (DR), the outcome of the discussion was disappointing for many. Presently, there exists no plan to merge DA/DR with basic pay.

Who Will Benefit?

Once the 8th CPC is fully operational, likely, more than 50 lakh central government employees and around 69 lakh pensioners will be covered all over the country.

The commission is anticipated to recommend alterations in pay, allowances, pensions, gratuity, bonuses, and other benefits of all employees and retirees who meet the criteria.

What’s Still Uncertain?

Though the government has confirmed the pension revision, an implementation date has not yet been fixed by the government. The ToR indicates the date will be determined later. This vagueness has caused many to be anxious about whether the changes will commence in 2026 or the period will be longer.

Moreover, DA will be revised as per the usual practice till the 8th Pay Commission is operational, but there is no assurance as to when or if it will be taken into the basic pay.

What It Means for Pensioners?

A great weight is finally removed from the shoulders of the pensioners. They had such a fear about the new pay structure that they were very worried about getting no upgrade. Now it looks like a possibility that even the old and new pensioners will still be treated equally.

However, without the DA-basic pay merger, the employees and retirees who are affected by this decision will probably see a limited increase in their take-home income – at least for the time being.