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8th Pay Commission Update: For several months, central government pensioners and employees have been concerned about whether the 8th Pay Commission would revise their pensions. As soon as the government released the Terms of Reference for the 8th Pay Commission, various employee organizations wrote to the Prime Minister and the Finance Minister, requesting that pension revisions be clearly included in the proposal. Confusion also spread among the public that the pension review was not included in the proposal. Clearing this confusion, the Finance Ministry clarified in the Rajya Sabha that the 8th Pay Commission will also make recommendations on pension-related issues. This information is significant because millions of pensioners have been waiting for a clear answer for a long time.

In the Rajya Sabha, MPs Javed Ali Khan and Ramji Lal Suman asked, through an unstarred question, whether there truly is no proposal for pension revision in the 8th CPC. In response, Minister of State in the Finance Ministry, Pankaj Chaudhary, categorically stated that this is false. He said, “The 8th Commission will submit its recommendations on various issues related to salaries, allowances, and pensions.” This response has brought relief to pensioners, as it is now clear that pension review is also on the Commission's agenda.

Plan to merge DA and DR into basic pay?
The two MPs also asked whether the government is planning to merge dearness allowance (DA) and dearness relief (DR) into basic pay, providing immediate relief to employees and pensioners.

Pankaj Chaudhary bluntly replied that the government has no such proposal. He said, “Currently, there is no proposal under consideration by the government to merge dearness allowance into basic pay.” When the DA reached 50 percent in January 2024, several employee organizations had demanded this merger from the government, as it would increase both future salaries and pensions. However, the government has consistently maintained that it does not plan to take any steps in this direction.

Another question from MPs was whether an official notification has been issued regarding the formation of the 8th Pay Commission. Minister Pankaj Chaudhary confirmed that the government has approved the formation by issuing a notification dated November 3, 2025, and its terms of reference have also been issued. The Commission's Chairman and members have also been appointed. This means the Commission has formally begun its work, paving the way for new recommendations for employees and pensioners in the future.

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