The 8th Pay Commission is in the crucial phase of its 18-month tenure, with retirement benefits and pension reforms at the forefront of discussions. The National Council-JCM (NC-JCM) has submitted a memorandum outlining several demands aimed at strengthening retirement security and improving post-retirement welfare for central government employees and pensioners. These demands include higher gratuity, pension parity, and the restoration of the Old Pension Scheme (OPS) for all Central Government employees.
One of the key demands is the calculation of Death-cum-Retirement Gratuity (DCRG) on 25 working days instead of 30, with the removal of the 16.5-times ceiling and an increase in the gratuity limit from ₹25 lakh to ₹75 lakh. This demand extends benefits to OPS, National Pension Scheme (NPS), and Union Public Service Commission (UPS) employees, ensuring a more comprehensive approach to retirement security.
Another critical issue is the extension of the One Rank One Pension (OROP) principle to civilian pensioners, ensuring pension revision with the same fitment factor as serving employees. This demand addresses the need for pension parity and fairness in the pension system.
The NC-JCM also calls for an increase in earned leave encashment to 600 days and the reimbursement of the full balance of Half Pay Leave at retirement. This proposal aims to provide employees with more flexibility and financial security during their retirement years.
In terms of pension commutation, the NC-JCM demands the restoration of the commuted portion of pension after 11 years or at age 71, whichever is earlier, instead of the current 15 years. This change would provide pensioners with more options and flexibility in managing their post-retirement finances.
The memorandum also proposes an increase in the full pension to 67% of the last pay drawn, raising the family pension to 50%, and extending enhanced family pension up to 70 years. Additionally, it calls for the introduction of higher age-based pension rates from 65 years onwards, ensuring a more comprehensive and equitable pension system.
The NC-JCM's demands also include the extension of all 8th CPC pension revisions to existing pensioners and family pensioners without retirement-date cut-offs, ensuring that all pensioners receive the benefits of the latest pension revisions.
Furthermore, the memorandum outlines welfare measures such as the introduction of HRA, LTC, caretaker allowance, income tax exemption on pension, restoration of railway concessions, and additional support for senior citizens and disabled pensioners. These measures aim to enhance the overall well-being and financial security of pensioners.
As the 8th Pay Commission consultations continue, the NC-JCM's demands are expected to play a significant role in shaping the final recommendations. The commission's report, which is expected to be submitted to the central government around May or June 2027, will have a profound impact on the salaries, pensions, and allowances of lakhs of serving central government employees and pensioners.
The 8th Pay Commission, constituted on 3 November 2025, is chaired by Justice Ranjana Prakash Desai and includes Professor Pulak Ghosh and Member-Secretary Pankaj Jain. The panel has been meeting with employee unions and associations to gather feedback on various issues, including salaries, allowances, pensions, and other service-related matters.
The next round of consultations begins in Delhi on Thursday, with meetings concluding on 10 August. The commission will then hold discussions in Chennai, Puducherry, Chandigarh, and Jaipur, with the Jaipur meetings scheduled for 31 August and 1 September. These consultations will provide an opportunity for further dialogue and input from stakeholders, ensuring a comprehensive and inclusive decision-making process.
In conclusion, the 8th Pay Commission consultations are entering a crucial phase, with the NC-JCM's demands and proposals taking center stage. The commission's recommendations will have a significant impact on the retirement security and post-retirement welfare of central government employees and pensioners. As the discussions continue, it is essential to consider the diverse needs and perspectives of all stakeholders to ensure a fair and equitable outcome for the entire workforce.
