New Delhi. News of relief for central employees and pensioners has come to light. There was a discussion going on for a long time regarding the formation of the 8th Pay Commission and its Terms of Reference (ToR). On Tuesday, December 2, 2025, in the Rajya Sabha, Minister of State for Finance Pankaj Chaudhary clarified that pension revision is also included in this commission.
This means that the Commission will give its recommendations not only on salary and allowances, but also on all pension issues. For a long time, many pensioner organizations had written letters to the Prime Minister and the Finance Minister demanding inclusion of pension revision. Now after the official confirmation from the government, this concern has been resolved.
MPs raised questions in Parliament
MPs Javed Ali Khan and Ramji Lal Suman had questioned whether pension revision is not included in the 8th Pay Commission. In response to this, the Minister clearly said that “The 8th Pay Commission will give its recommendations on all issues including allowances and pension.”
However, the government’s stance on merging DA with Basic is as strict as before. The minister said that there is no proposal under consideration to merge the existing DA with basic pay. DA had reached 50% in January 2024, but the government has repeatedly rejected this demand.
Work on 8th Pay Commission now begins
The government also confirmed that the 8th Pay Commission notification was released on November 3, 2025. The Commission has now formally started its work and its Chairman and members have also been appointed.
What is Terms of Reference (ToR)?
ToR can be called the ‘rule book’ of any pay commission. On this basis the commission prepares its report. It contains definitions, terms and subjects on which the Commission will make recommendations. The draft ToR is prepared by Joint Consultative Machinery (JCM). In this, representatives of employee unions of various ministries meet with the government to discuss TOR. After the approval of the Cabinet Committee, the Commission starts preparing its report on these points.
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