As discussions around the 8th Pay Commission intensify, a major question is dominating the minds of nearly one crore government employees and pensioners: Will the Old Pension Scheme (OPS) be reinstated? This demand—long raised by employee unions—is now formally being pushed to the government, with associations urging that OPS be included in the Terms of Reference (ToR) of the upcoming commission.

The government recently issued the official Terms of Reference, which outline what the 8th Pay Commission will examine. While the announcement raised hopes among employees, many significant expectations appear to be missing from the framework, prompting strong reactions from unions. The National Council (Staff Side), Joint Consultative Machinery (NC JCM)—the largest representative body of central government employees—has directly appealed to Prime Minister Narendra Modi and Finance Minister Nirmala Sitharaman to revise the ToR immediately. According to the council, if these gaps are not fixed, millions of employees and pensioners could be adversely affected.

The most significant demand highlighted by NC JCM is the reinstatement of the Old Pension Scheme for employees currently enrolled under the National Pension System (NPS). In letters written to the Prime Minister and Finance Minister, the council stated that the existing ToR fails to acknowledge key issues around pension security.

The union argues that NPS does not provide financial certainty after retirement, which was a fundamental advantage of the Old Pension Scheme. Under OPS, retirees received 50% of their last drawn salary as a guaranteed pension, without contributing during their service years. NPS, being market-linked and contributory, does not guarantee fixed benefits.

Employee associations believe that the upcoming Pay Commission must address this gap and restore OPS for central government staff, ensuring long-term financial stability after retirement.

NC JCM has submitted a detailed set of modifications and additions that it wants incorporated into the 8th Pay Commission’s Terms of Reference. These include:

• Reinclusion of the “expectation of stakeholders” clause that was part of the 7th Pay Commission but is missing this time.




• Removal of the line referring to the “unfunded cost of a non-contributory pension scheme,” which unions believe may discourage OPS considerations.




• Official announcement that the 8th Pay Commission will come into effect from January 1, 2026.




• Provision of 20% interim relief to employees and pensioners to ease inflation pressure until the new pay scales are implemented.




• Restoration of commutation benefits after 11 years, which employees have consistently demanded.




• An additional 5% increase in pension every five years, helping retirees manage rising living costs.




• Improved pension revision coverage for older pensioners, many of whom face financial hardships due to outdated pension structures.

Unions insist that these points are essential for fair treatment of employees and retired staff and that the government must review the ToR urgently.

The 8th Pay Commission is headed by Justice Ranjan Desai, who will lead the panel responsible for examining salary structures, allowances, and pensions for central government staff. As per initial estimates, the commission is likely to take around 18 months to complete its assessment and prepare its report.

Given this timeline, the final report may not be available before mid-2027. However, once the recommendations are submitted, they must pass through Cabinet approval. Even after that, the financial benefits are expected to be implemented with effect from January 1, 2026, as this date has traditionally been the baseline for all central pay commissions.

The possibility of OPS restoration is one of the most sensitive and impactful issues for government employees today. With rising inflation, increasing post-retirement expenses, and concerns over fluctuating NPS returns, many employees view OPS as a long-term safety net.

As unions intensify pressure and the government begins reviewing the concerns raised, the debate around the 8th Pay Commission is expected to grow stronger in the coming months.