The topic of 8th Central Pay Commission (8th CPC) has returned to the national agenda when the employee unions of central government workers are pressing their demand to change the Terms of Reference (ToR) that was ratified by the Union Cabinet.
It has been noted by the employee representatives that the current structure of the 8th CPC is not paying adequate attention to the long-standing hopes of serving employees and pensioners, in the backdrop of the increasing inflation rate and the rising cost of living.
Reasons Why the Terms of Reference of the 8th CPC are Being Questioned
The Terms of Reference (ToR) spell out the scope, powers and responsibility of a Pay Commission. Staff unions claim that the current ToR of the 8th Central Pay Commission does not contain some crucial provisions as were found in the previous pay commissions.
Employee groups claim that unless these terms are updated, the end product of the recommendations would not be able to give significant financial help to central government workers and pensioners.
Central Government Unions give Strike Notice
The Confederation of Central Government Employees and Workers has placed a formal strike notice on the Cabinet Secretary, which declares their intention to strike nationwide on one day on 12 February 2026.
The strike notice is a sign of increasing dissatisfaction with employees at work considering the delays in pay revision and unaddressed service issues. According to union leaders, the strike is supposed to raise alarm on the long-standing demands that have been pending for many years.
The Most Notable Demands That were Raised By the Employee Unions
1. Amendment of 8th CPC Terms of reference
The government should change the ToR in such a way that unions seek the government to clearly include:
- Effective pay revision system.
- Equal pension adjustment to the retirees.
- Security of interest of employees.
- Definite implementation schedule.
They are of the opinion that an effective and inclusive ToR is a key to a balanced and transparent pay commission report.
2. Merger of 50% DA/DR With Basic Pay
The combination of 50 percent Dearness Allowance (DA) and Dearness Relief (DR) with basic pay and pension is one of the most significant demands.
Unions of employees claim that DA has gone beyond substantial scales as a result of inflation and its merger will offer long term financial security and not short term relief.
3. Demand for 20% Interim Relief
In a bid to deal with increased costs prior to the ultimate 8th Central Pay Commission findings, unions are seeking a 20 percent interim reduction in pay and pension that will come into place on 1 January 2026.
According to them, this is required because past pay commissions have taken years to finish their task.
4. Issues and OPS Demand related to Pensions
Pensioners associations have not been left behind and they have protested, demanding:
- Rewinding of the Old Pension Scheme (OPS).
- Cessation of NPS / Unified Pension Scheme.
- Equal pension adjustment despite the year of retirement.
- Early commuted pension restoration.
These are some of the most confidential and emotionally charged needs pitting the retirees in government.
Background What is the 8th Central Pay Commission?
The Union Government approved the 8th Central Pay Commission to revise:
- Central government: Salary structure of central government employees.
- Allowances and benefits
- Retirement and pension benefits.
The last 7th Pay commission was introduced in 2016 and since that time the employees have been waiting to get revisited to the next revision cycle now that there has been constant inflation and increased household expenses.
Concerns Among Employees with Regards to Delayed Benefits
Employee unions are concerned that in case the Terms of Reference are not changed, the recommendations of the commission can:
- Delay financial benefits
- Rule out crucial pension reforms.
- Limit scope for DA merger
- Lessen the effect of general wage increase.
This has left a lot of anxiety among lakhs of employees and pensioners in government departments.
What Happens Next?
Due to the already submitted strike notice, employee unions and the government discussions are likely to occur within the next few weeks. In case of failures at the negotiation table, the suggested countrywide strike would affect the administrative work at the central government offices.
Professionals are sure that timely communication and the partial consideration of demands might help to avoid the development of the situation and provide the pay commission process with smoother functioning.
Conclusion
The controversy that has followed the Terms of Reference of the 8th Central Pay Commission points to the increasing disparity between the expectations of employees and administrative decisions. Government employees are praying that the government is going to revise the pay revision framework in a fair and transparent manner and also need to be employee friendly as inflation is on the increase.
The focus has now shifted on the reaction of the Union Government, which will determine the future of the pay and pension reforms in India.