Nearly half of the 8th Pay Commission's 18-month mandate is done. The government's Gazette focuses on NPS and UPS reviews, while employee unions push for OPS restoration.
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The 8th Pay Commission has completed visits to Kolkata and Bhubaneswar, marking nine months since its constitution on November 3, 2026. Nearly half of its 18-month permitted duration is now over. More consultations across Indian states are expected in the coming months as the commission moves toward finalizing its recommendations.
The Terms of Reference, spelled out in a November 2025 Gazette notification, instruct the commission to review gratuity and pension benefits for employees under the National Pension System and the Unified Pension Scheme. The notification also calls for examination of pension provisions for employees outside these schemes, while weighing the financial burden of non-contributory pension systems.
The notification does not mention replacing either NPS or UPS with the Old Pension Scheme. It limits the commission's mandate to reviewing existing benefits and recommending improvements.
Employee unions have taken a different position. In its memorandum to the commission, the Staff Side of the National Council–Joint Consultative Machinery demanded a complete rollback of both NPS and UPS. The unions argued that NPS makes retirement benefits entirely dependent on market performance, creating uncertainty for employees who joined government service after January 1, 2004.
The employee body also noted that since UPS was introduced in April 2025, only about 1.22 lakh employees – roughly 4.5% of the nearly 26 lakh NPS subscribers – have opted for the scheme. That figure, they said, reflects limited acceptance.
Retiree organizations have echoed similar views, calling for OPS restoration or at minimum a guaranteed minimum pension, a higher government contribution, and stronger safeguards for predictable post-retirement income.
Most of these demands conflict with the Gazette notification's focus on reviewing the existing pension framework rather than replacing it. The commission's final recommendations, expected within the next nine months, will determine how that gap gets resolved.
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