8th Pay Commission: Chaired by former Supreme Court Justice Ranjana Prakash Desai, with Professor Pulak Ghosh, a tenured Professor of Finance and member of the Economic Advisory Council to the Prime Minister, serving as a member, and former IAS officer Pankaj Jain as Member-Secretary, the 8th Pay Commission has received a range of demands from employee and pensioner representatives.
The Prime Minister, Narendra Modi, constituted the in January 2025, and its Terms of Reference (ToR) were issued in November 2025. Since then, the panel has been conducting meetings with eligible representatives and stakeholders to gather recommendations on pay revisions, allowances, pension benefits, salary structures, and related matters.
The commission consults labour , ministries, pension bodies, central government organisations and institutions, employee unions and associations, and other stakeholders. Based on these consultations and data analysis, it will make recommendations on pay structures, allowances, pensions, and related benefits for central government employees and pensioners.
Here’s a look at one of the key pension revision demands before the commission, the proposal for age-based pension enhancement, and what it could mean for retirees if accepted.
Proposed age-based pension enhancement, explained
One of the demands put forth before the panel includes the introduction of higher pension benefits for senior based on age, according to a Clear Tax report.
Notably, this is still under consideration and has not yet been approved or accepted by the Centre. But while the 8th CPC’s final recommendations may be much different compared to the proposals, here’s a look at how the age-based would likely work:
| Age of Pensioner | Proposed Pension Level |
|---|---|
| 65 years | 70% of Last Pay Drawn |
| 70 years | 75% of Last Pay Drawn |
| 75 years | 80% of Last Pay Drawn |
| 80 years | 85% of Last Pay Drawn |
| 85 years | 90% of Last Pay Drawn |
| 90 years and above | 100% of Last Pay Drawn |
What are employees’ demands for a pension?
Among the other major pension-related proposals are:
- Increased minimum pension to 67% of the Last Pay Drawn (LPD) or the average emoluments drawn during the last 10 months of service.
- Revise the fitment factor used for calculations.
- Review the (DR) structure and its integration into pension benefits.
- Expand the scope of family pension benefits.
Further, the National Council — Joint Consultative Machinery (NC-JCM), the Maharashtra Old Pension Organisation and the All India Defence Employees Federation (), which collectively represent a number of central government employees, pensioners and defence civilians, have made detailed submissions to the commission.
Overall, they have demanded comprehensive pension restructuring, improvements and parity in payments as stated below:
| Employee Group | Pension Reform |
|---|---|
| NC-JCM | Structural alignment with revised pay |
| Maharashtra Old Pension Organisation | OPS restoration + UPS reforms + DA linkage |
| AIDEF | Pension parity with revised pay structure |
8th CPC discussions: What is the expected timeline?
Notably, the commission has invited suggestions and memoranda from eligible representatives and stakeholders till 15 June. It opened formal memorandum on 5 March 2026, extended the earlier deadlines from 30 April to 31 May, and now to mid-June. As per the plan, the CPC is expected to submit its final recommendations around 18 months after its constitution by mid-2027.
The beneficiaries include around 50 lakh central government employees and around 65 lakh retired central government (including defence and railway employees and retirees).
Further, based on past trends, once the pay commission’s recommendations are made, the rollout takes another two to three years to complete. This means that hikes announced in 2027 may only be fully implemented by 2029 or 2030.
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