Responding to an unstarred question from Members of Parliament, Javed Ali Khan and Ramji Lal Suman, whether pension revision of Central Government employees is not proposed under the 8th CPC, Pankaj Chaudhary, Minister of State, Ministry of Finance, says that it’s a part of the recommendations.
“The 8th CPC will make its recommendations on various issues viz. pay allowances, pension, etc., of the central government employees,” Chaudhary says.
Also see: 8th Pay Commission salary, pension hike: When will govt employees receive 8th CPC payments?
Will the government merge dearness allowance (DA) with basic pay?Khan and Suman also asked whether the government would merge the existing dearness allowance (DA)/dearness relief (DR) with basic pay as an immediate relief measure for central government employees/pensioners?
Chaudhary replied that the government has no such plan.
“No proposal regarding the merger of the existing dearness allowance with the basic pay is under consideration with the government at present,” said Chaudhary.
When DA reached 50% in January 2024, many employee bodies wrote to the Finance Ministry to merge DA with the basic salaries of employees as it will increase their overall salary in the future. But the government has time and again said that it had no such plans.
8th Pay Commission terms of reference (TOR)Khan and Suman also asked whether the government has issued any notification for the constitution of the Eight Central Pay Commission (CPC)?
Addressing the query, Chaudhary said, “Yes, the government has notified resolution dated November 03.11.2025 for the constitution of the Eighth Central Pay Commission (CPC) along with Terms of Reference (ToR).”
The central government early in November approved Terms of Reference for the 8th Pay Commission. It also appointed chairman and members of the 8th CPC.
FAQs about 8th Pay Commission
What are the Terms of Reference (ToR) in a Pay Commission, and why are they important?
TORs are like a rule book for a pay commission, based on which the commission prepares its report. TOR has definitions, terms and conditions, and demands that the pay commission use to prepare its report.
Who drafts and approves the Terms of Reference?A Joint Consultative Machinery (JCM) drafts Terms of Reference (TOR) of a pay commission, and the Cabinet Committee under the Finance Ministry approves it. The JCM has employee union representatives from each ministry. Out of 60 JCM members, 12 are selected for the standing committee. These 12 members discuss TOR topics with secretary-level government employees. Once finalised, TOR goes to the Cabinet for approval. Once the Cabinet gives its go-ahead, the pay commission works on them.
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