8th Pay Commission: 69 Lakh Pensioners Excluded From Purview? ToR Tweak Sparks Questions

Shortly after the Centre notified the full text of the Terms of Reference (ToR) for the 8th Pay Commission, a major employee union has alleged that the ToR excludes 69 lakhs pensioners.

The allegation stems from the difference in the ToR text for the 8th Pay Commission, as compared to the same issued in 2014 following the approval granted for the 7th Pay Commission.

Notably, the ToR acts as a broad framework for the pay commissions.

The All India Defence Employees' Federation (AIDEF), in a letter written to Finance Minister Nirmala Sitharaman on Nov. 4, pointed out that the ToR for 8th Pay Commission excludes the portion on examination of "pension and other retirement benefits".

On the other hand, the 7th Pay Commission's ToR explicitly mentioned that the panel will look into the pension structure of employees who have already retired.

Here's what the ToR for 7th Pay Commission stated: "To exаmine the principles which should govern the structure of pension and other retirement benefits, including revision of pension in the case of employees who have retired prior to the date of effect of these recommendations, keeping in view that retirement benefits of all Central Government Employees appointed on and after 01.01.2004 are covered by the New Pension Scheme (NPS)."

This portion, however, is missing from the ToR for the 8th Pay Commission, which was notified by the Department of Expenditure on Nov. 3.

The AIDEF has appealed to the finance minister to direct the revision of ToR, and ensure the inclusion of pensioners who have retired, or will retire before Jan. 1, 2026, under the 8th Pay Commission's purview.

"It is most unfortunate that 69 lakh central government pensioners and family pensioners, who have given their sweat and blood to the country for more than three decades while in service, are kept out of the purview of 8th CPC," the employee union stated in its letter to Sitharaman.

The AIDEF further wrote that the 8th Pay Commission's ToR should also consider the "restoration of commuted value of pension after 11 years", and "enhanced pension by 5% once in 5 years from the date of retirement as recommended by the Parliamentary Standing Committee".

The employee union has also sent a copy of the letter to National Council-Joint Consultative Machinery (NC-JCM) Staff Side Secretary Shiv Gopal Mishra, urging him to raise the issue with the government.

To be sure, even though the tweak in ToR for 8th Pay Commission has sparked questions, Union Minister Ashwini Vaishnaw had stated on Oct. 28 that the 8th Pay Commission's recommendations "will cover nearly 69 lakh pensioners", apart from nearly 50 lakh central government employees.

The ToR for the commission was approved by the Union Cabinet on Oct. 28, after a wait for nearly 10 months. The panel, headed by Justice (retired) Ranjana Desai, has been given an 18-month deadline to submit its report to the Centre.