Following the notification of the 8th Pay Commission and the validation of existing pension rules under the Finance Act, 2025, the government told Parliament that the Commission’s mandate includes pension, though the final structure of revision is yet to be decided.
8th Pay Commission Update
8th Pay Commission: Since the government officially notified the formation of the 8th Central Pay Commission (CPC) on November 3, 2025, a major concern has been worrying lakhs of central government pensioners. The key question was whether pensioners who retired on or before December 31, 2025 would be included in the upcoming pension revision.
This concern became stronger after the Finance Act, 2025 validated existing pension rules. Some pensioners feared this could lead to a difference between those who retired earlier and those retiring after the new pay commission is implemented.
The government has now addressed these doubts in Parliament.
A specific question was raised in the Lok Sabha asking, “Whether the Central Government pensioners who have retired on or before 31st December, 2025 are likely to be covered for revision of their pension under the 8th Central Pay Commission?”
The question was part of a wider discussion on whether the government planned to treat pensioners differently based on their retirement date and how the 8th CPC would handle pension matters.
Responding to the question, Minister of State for Finance Pankaj Choudhary clearly explained the government’s position.
The government stated, “The 8th CPC has been mandated to make its recommendations on Pay, Allowances, Pension, etc. of the Central Government employees.”
This reply makes it clear that pension revision is part of the 8th Pay Commission’s responsibility, along with pay and allowances.
The Finance Ministry also explained that pension matters are governed by existing rules. These include:
Central Civil Services (Pension) Rules, 2021
Central Civil Services (Extraordinary Pension) Rules, 2023
Pension revisions are carried out through general orders issued by the Central Government, including those based on accepted recommendations of a Pay Commission.
The ministry further clarified an important point related to the Finance Act, “The Part-IV of Finance Act, 2025 has validated the existing Central Civil Services (Pension) Rules and principles governing pension liabilities… and does not alter or change existing Civil or Defence pensions.”
In simple terms, the Finance Act did not introduce any new rules that separate pensioners based on retirement date.
The worry among pensioners started after two developments:
Notification of the 8th CPC
Passage of the Finance Act, 2025
Many retirees feared that:
A cut-off date like January 1, 2026 could be introduced
Pensioners who retired earlier might not receive full benefits
Different categories of pensioners could be created
Such fears are not new. Similar debates had taken place during earlier pay commissions over whether older pensioners would get equal benefits compared to newer retirees.
The government informed Parliament that the 8th Central Pay Commission has been formally constituted through a resolution dated November 3, 2025, along with its Terms of Reference (ToR).
According to the notification:
The Commission has 18 months to submit its report
It will give recommendations on pay, allowances, and pension of Central Government employees
While the recommendations are still awaited, the official constitution of the Commission confirms that the process is now underway.
Based on the reply given in Parliament, there is no indication that pensioners who retired before 2026 will be left out.
The 8th CPC has been clearly directed to examine pension matters. Existing pension rules remain unchanged for now. However, the final structure of pension revision — including the fitment factor, parity formula, or revision method — will only be known after the Commission submits its report and the government accepts it.
For the time being, pensioners who retired on or before December 31, 2025 can take reassurance from the fact that pension revision is firmly within the scope of the 8th Central Pay Commission.
