8th Pay Commission: Pension not excluded, Finance Ministry confirms good news for pensioners

Amid a growing concern among central government pensioners over their exclusion from the 8th Central Pay Commission (CPC), the Finance Ministry on December 2, 2025, clarified that the subject of pension is not excluded from the purview of the 8th Pay Commission.

Union Minister of State for Finance, Pankaj Chaudhary, said that the 8th Pay Commission will make its recommendations on various issues, including pay, allowances and pension of central government employees.

"The Eighth CPC will make its recommendations on the various issues viz. Pay" Allowances, Pension, etc. of the Central Government employees," Chaudhary said in a written reply to a query in the Rajya Sabha.

The MoS for Finance made the above clarification in response to a query on "whether revision of pension of Central Government employees is not proposed under eight CPC, the reason therefor?"

Chaudhary also responded to another query on the merger of dearness allowance with basic pay as an immediate relief measure. He said there is no such proposal under consideration by the Government at present.

"No proposal regarding merger of the existing Dearness Allowance with the Basic Pay is under consideration with the Government at present," Chaudhary said.

The Central Government had notified the Resolution dated November 3, 2025 for the constitution of the 8th Central Pay Commission (CPC) along with the Terms of Reference (ToR).

As per the Terms of Reference, the 8th CPC is mandated to examine and recommend changes that are desirable in the emoluments, including pay, allowances, and other facilities/benefits, in cash or kind, of central government employees.

The 8th CPC is expected to submit its recommendations within 18 months. "The Commission will make its recommendations within l8 months of the date of its constitution. lt may consider, if necessary, sending interim reports on any of the matters as and when the recommendations are finalized," the TOR said.