The National Council (Staff Side) of the Joint Consultative Machinery (NC-JCM), representing central government employees, has formally requested Prime Minister Narendra Modi to revise the Terms of Reference (ToR) for the 8th Central Pay Commission (CPC). In a letter also addressed to Finance Minister Nirmala Sitharaman, the NC-JCM has requested key modifications to the ToR, including the restoration of the Old Pension Scheme (OPS) for 26 lakh employees currently covered under the National Pension System (NPS), revising pensions for existing retirees, and declaring January 1, 2026, as the official implementation date for the 8th CPC recommendations.

Key Amendments Sought

The NC-JCM is advocating for several key changes to be included in the ToR:

• Restoration of the "Expectations of Stakeholders" Clause: The NC-JCM has objected to the omission of the phrase "with due regard to the expectations of stakeholders" from the 8th CPC's ToR, which was an important element in the 7th Pay Commission's ToR. They argue that its absence sends a discouraging message to government employees.
• Pension Revision for Existing Pensioners: The council has highlighted that the ToR does not explicitly mention pension revision, despite government statements that the 8th CPC will cover pensioners. They have requested the inclusion of conditions such as restoring commutation after 11 years and providing a 5% additional pension every five years after retirement.
• Restoration of the Old Pension Scheme (OPS): The letter asks for the explicit inclusion of OPS restoration for those who joined government service on or after January 1, 2004. The NC-JCM said this demand reflects concerns about financial security after retirement.
• Removal of "Unfunded Cost" Phrase: The employee body has objected to the phrase "unfunded cost of non-contributory pension schemes" in the ToR, calling it unjust. The NC JCM wants this deleted as it “treats constitutionally guaranteed pension rights as fiscal burdens”.
• Implementation Date and Interim Relief: The NC JCM is advocating for the 8th CPC's recommendations to take effect from January 1, 2026, and has sought a 20% interim increase in basic pay and pension to help employees cope with inflation until the Commission submits its report.

Concerns Over Pension and Implementation Date

Employee unions have voiced concerns over the absence of explicit provisions for pension revisions in the current ToR. The NC-JCM has requested the inclusion of measures such as restoring commutation after 11 years, implementing a 5% additional pension every five years post-retirement, and ensuring comprehensive revision coverage for all pensioners. The absence of a specified implementation date in the ToR has also raised concerns among employee and pensioner bodies. The NC JCM is pushing for January 1, 2026, as the effective date for the 8th CPC recommendations.

OPS Demand Gains Momentum

The demand for restoring the Old Pension Scheme (OPS) has gained momentum. A meeting of the Standing Committee of the National Council–JCM on November 15, 2025, placed significant emphasis on including OPS restoration in the 8th Pay Commission's recommendations. The committee has asked all affiliated organizations to submit their recommendations for the 8th Pay Commission by December 15, 2025.

Government Employee Perspective

Shiva Gopal Mishra, secretary of the staff side of NC-JCM, emphasized that amending the ToR would benefit the wider community of serving and retired central government employees, including those in the Armed Forces. Employee unions are collectively pushing the government to consider these changes for the benefit of both serving and retired personnel.

Expected Benefits and Timeline

The 8th Central Pay Commission, expected to be implemented from January 1, 2026, is likely to bring major benefits for central government employees and pensioners. The commission's recommendations are expected to take effect from January 1, 2026. The commission is expected to submit its report within 18 months of its formation, potentially around mid-2027, after which the government will review and take final decisions regarding implementation.