The new Terms of Reference (ToR) that have just been unveiled may result in the exclusion of almost 6.9 million retirees from the scope of the upcoming 8th Pay Commission. The issue raises a big question for the government, the unions, and the employees, who are worried that financial interests will not be adequately addressed.
What’s the Issue with the 8th Pay Commission?
The Union Government formally announced the Terms of Reference for the 8th Central Pay Commission (CPC) on November 3, 2025, appointing a three-member committee led by Justice Ranjana Desai. Nevertheless, the ToR does not specifically refer to the overhaul of pension schemes, which has been the case with earlier commissions.
The All India Defence Employees Federation (AIDEF) has voiced the opinion that the unmentioned of pension restructuring in the ToR could effectively mean that 69 lakh pensioners and family pensioners will be cut off from the commission’s proposals.
Who Could Be Affected?
The potential exclusion will negatively affect:
- The retired central government employees group, which includes those working in governance, railways, and military
- The family pensioners group, who depend on the monthly allotment for sustenance
- The low-income senior citizens group, who were counting on an increase in minimum pension and Dearness Allowance (DA)
The scenario could lead to a halt in pension disbursements, particularly in a period of economic inflation and increasing healthcare costs.
Expert Views and Union Demands
Exclusion of pensioners is regarded by the experts as contradictory to the commission’s dream of a comprehensive compensation reform. “Pensions are a significant part of the retired person’s welfare. The very essence of the Pay Commission is being neglected if they are not considered,” opines economist R. K. Sharma.
Employee unions are calling for an immediate revision of the ToR to make it inclusive of pensioners. AIDEF has submitted a formal application to the Ministry of Finance for the purpose of defining the boundaries of the commission and ensuring that pensioners will be allowed to participate in the process.
Conclusion
The issue of the 8th Pay Commission 2025 exclusion of 6.9 million pensioners is a matter that is urgent and will have a very negative effect on the financial stability of the retired workforce in India. The government has to quickly revise the Terms of Reference in order to accommodate the unions’ demand for clarity and inclusion while still ensuring the welfare of the pensioners. Stakeholders are invited to keep themselves informed and to lend their support to advocacy initiatives aimed at achieving equitable treatment.
