8th Pay Commission: Will the Old Pension Scheme be restored for central government employees?

New Delhi: The debate between employees and pensioners regarding the proposed 8th Pay Commission of the Central Government has once again intensified. Employee organizations have raised the demand from the government to completely restore the Old Pension Scheme (OPS). Unions say that the current pension system does not guarantee stable and assured income to employees, so the government should return to the old system. Regarding this issue, various employee organizations have placed their demands before the Staff Side Committee of the National Council-Joint Consultative Mechanism (NC-JCM).

What is the main demand of employee unions?

The main demand of the employee organizations is that the National Pension System (NPS) and the recently implemented Unified Pension Scheme (UPS) should be abolished and the old pension scheme should be implemented again. The unions argue that in OPS, the employees got about 50 percent of the final salary as a pension after retirement and on top of that, a dearness allowance was also given, due to which the income remained fixed. Whereas pension in NPS depends on the market returns, due to which there remains uncertainty about future income.

Why are employees angry about UPS and NPS?

According to reports, the expected confidence among the employees regarding the new pension system has not been built. According to government data, by November 2025, only about 1.22 lakh central employees have opted for the Unified Pension Scheme, while the number of eligible employees is said to be around 23 to 25 lakh. That is, very few employees have adopted the new system, which the unions are considering as a sign of dissatisfaction.

What do employees expect from the 8th Pay Commission?

Employee organizations believe that the upcoming pay commission should not be limited to just increasing salaries but should also focus on pensions and other service conditions. The unions have also raised demands from the commission, like balancing between pay and pension, increasing the minimum wage and a better promotion system during service. Many organizations have also suggested a system of at least five promotions and changes in the salary determination formula.

Any demand for change in calculation of salary and pension?

Some employee organizations have also proposed that the 'family unit' formula used for determining pay be changed. At present the salary is calculated on the basis of three units, while the unions say that it should be made five units. His argument is that in the current economic circumstances the parents of the employee are also dependent; hence, the actual expenditure of the family is higher.

What could happen next?

At present, the process of 8th Pay Commission is going on and various employee organizations are putting their demands before the Commission. The Commission will prepare its recommendations on the basis of these suggestions and memorandums. Experts believe that issues related to pension and salaries will remain a major topic of discussion between the government and employee organizations in the coming months.