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8th Pay Commission: Will pensions rise along with central government salaries? Finance ministry’s big clarification

The Finance Ministry has clarified whether pensions will increase along with central government salaries under the 8th Pay Commission. Here’s what the latest update means for employees and pensioners

8th Pay Commission update: Since the Terms of Reference (ToR) for the 8th Pay Commission were announced, several employee unions have raised doubts and concerns about the details. The Finance Ministry has now addressed these issues and clarified the confusion. The ministry responded to concerns raised by labour unions and employee representatives about the ToR.

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After the government notified the ToR, many noticed a small but important omission — there was no clear mention of “pension revision.” This missing reference led to widespread worry among unions, who questioned whether pension updates would be included in the commission’s mandate.

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They said this was not just a small writing mistake but a serious change from what was done earlier.
In the past, every Pay Commission clearly said it would revise both salaries and pensions.
This time, because the ToR did not mention pensions, people feared the government might leave pension revision out of the 8th Pay Commission’s work.

Now, the government has given a response, and this clarification is expected to calm those worries.

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What Finance Ministry said on 8th pay commission

While answering an Unstarred Question in the Rajya Sabha, the Finance Ministry made its stand very clear. Minister of State for Finance Pankaj Chaudhary stated, “The Eighth CPC will make its recommendations on the various issues, viz. Pay, Allowances, Pension, etc. of the central government employees.”
This clarification has cleared the air on one of the biggest anxieties staff associations had expressed since November. With this, the government has officially confirmed that pension revision will happen under the 8th Pay Commission, just like earlier commissions.

First published on: Dec 04, 2025 03:27 PM IST


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