In a significant update, the 8th Pay Commission has concluded its meetings in Kolkata and Bhubaneswar and is now preparing to enter another phase in its journey. Meanwhile, a major debate has broken out between employee unions and the Commission.
The disagreement centres on the government’s recent gazette notification. While the government remains focused on reviewing the National Pension System (NPS) and the Unified Pension Scheme (UPS), employee unions are calling for the reinstatement of the Old Pension Scheme (OPS). Here is a closer look at the ongoing tension between the two sides.
What did the government state in the gazette notification?
According to the notification issued on November 3, 2025, the Terms of Reference for the 8th Pay Commission highlighted two main objectives. First, the Commission will review and provide recommendations on the Death-cum-Retirement Gratuity (DCRG) for employees under the NPS (which now includes the UPS).
Second, it will review gratuity and pensions for those not covered by the NPS, while also looking for ways to manage the financial burden that non-contributory pension schemes place on the public treasury.
Also Read: Bajaj Auto Q1 Results: Profit Jumps 42% To Rs 2,983 Crore; Revenue Rises 37%
What are the specific demands from employees and unions?
Employee unions and pensioner groups are demanding that the NPS and UPS be scrapped entirely in favour of the OPS, governed by the updated 2021 Pension Rules. Citing Supreme Court rulings, these organisations argue that a pension is an earned right rather than a gesture of charity.
They believe that mandating the NPS for employees hired after January 1, 2004, is fundamentally unfair.
Data provided by employee organisations shows that despite the introduction of the Unified Pension Scheme ( UPS) in April 2025, only 1.22 lakh employees—roughly 4.5 per cent of the 2.6 million NPS subscribers—have made the switch.
This low adoption suggests a lack of interest in the current schemes. If the OPS is not fully restored, pensioners’ associations are pushing for a guaranteed minimum pension, increased government contributions, and more stable income provisions.
What is the perspective of pensioners?
Various retired employees' groups, such as the Railway Senior Citizens Welfare Society (RSCWS), maintain that a guaranteed, fixed pension is vital for old-age financial security. They advocate for the OPS to be reinstated for all staff who joined after 2004.
They also urge the government to ensure minimum pension guarantees and better fund management to protect future retirements.
How much progress has the Pay Commission made?
The 8th Pay Commission was established on November 3, 2025, with a requested timeline of 17 months to complete its report. By August, it will have reached the nine-month mark, roughly halfway through its term.
It remains to be seen what path the Commission will take following its initial round of consultations.