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8th Pay Commission: Central Government pensioners want clarity on pay revision benefits

Upstox

3 min read | Updated on June 23, 2025, 22:14 IST

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SUMMARY

The Staff Side (JCM) says the Finance Bill 2025 has given the Government the power to decide whether to extend the benefit of pay fixation under the 8th Pay Commission to pensioners or not.

8th pay commission pension news

Pensioners are insecure about a new legislation in the Finance Bill 2025. | Image source: Shutterstock

While the Staff Side (JCM) has once again urged the government to expedite the terms of reference and appointments of the 8th Central Pay Commission (CPC), Central Government pensioners are seeking clarity on benefits of pay fixation and revision under the new pay panel.

Central Government pensioners fear being left out of pay hikes from the 8th CPC due to a provision of the Finance Bill 2025, passed by the Lok Sabha in March 2025.

According to the Staff Side (JCM, the above provision gives the Government the power to decide whether to extend the benefit of pay fixation under the 8th CPC to pensioners or not.

What the Finance Bill said

As part of the Finance Bill 2025, the legislation regarding Validation of the CCS (Pension) Rules and Principles for expenditure on Pension liabilities from the Consolidated Fund of India was passed in Lok Sabha on March 25, 2025.

According to the Government's Press Information Bureau (PIB), the validation legislation validated the principle that the Central Government has the authority to establish distinctions among pensioners.

"The validation legislation validates the principle that without prejudice to the Pension Rules, the Central Government has the authority to establish distinctions among pensioners as a general principle and that a distinction may be made or maintained amongst the Pensioners, which may emanate from the accepted recommendations of the Central Pay Commissions, and in particular the distinction may be made on the basis of the date of retirement," PIB said in a release dated March 26, 2025.

It further said that the legislation was made effective from June 1, 1972, thereby validating all Rules made under Article 309 of the Constitution for CCS (Pension) Rules, 1972, CCS (Pension) Rules, 2021, CCS (Extraordinary Pension) Rules, 2023, including all instructions issued and amendments from time to time.

The above legislation, however, has led to speculations on social media that the Government may deny 8th CPC benefits to existing pensioners.

According to the Staff Side, serious concern has arisen among Central Government pensioners, particularly because of the notification of the Finance Bill, which it claims gives the Government discretion over whether or not to extend the benefit of pay fixation under the 8th CPC to pensioners.

The Staff Side says this has led to a "growing sense of insecurity and resentment among retired personnel, who have every expectation of being treated equitable alongside serving employees."

What do pensioners want now?

Central Government pensioners want a clarification on the issue that they won't be deprived of the 8th CPC benefits. In a letter to the Government, the Staff Side said, "Clarify, through a formal directive that the benefits of pay fixation and revision under the 8th CPC shall also be extended to all Central Government pensioners, thereby removing doubts and ensuring parity and fairness in treatment."

Meanwhile, the Government has clarified that the Central Government employees switching to UPS from NPS will continue to receive gratuity benefits.
(This report was first published on June 20, 2025)
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