Summary of this article
8th Pay Commission consultations shift focus towards pension reforms.
NC-JCM seeks Rs 75 lakh gratuity and higher pensions.
Report expected by May or June 2027 after consultations.
As the 8th Pay Commission resumes consultations this week, retirement benefits and pension reforms are emerging as key issues. Employee representatives have proposed a series of changes ranging from a gratuity ceiling of Rs 75 lakh to higher pension benefits and additional welfare measures for retirees.
Next Round Of Consultations
The next round of consultations has begun in Delhi and will continue until August 10. The 8th Pay commission will then hold meetings in Chennai, Puducherry, Chandigarh and Jaipur, with the final leg scheduled for August 31-September 1 in Jaipur.
The memorandum submitted by the National Council of Joint Consultative Machinery (NC-JCM) is expected to remain one of the key reference documents. It outlines proposals to strengthen retirement security, improve pension parity, and enhance post-retirement welfare.
Key Pension Demands
Among its major proposals, the NC-JCM has sought an increase in the Death-cum-Retirement Gratuity ceiling from Rs 25 lakh to Rs 75 lakh, calculation of gratuity on 25 working days instead of 30, removal of the existing 16.50-times ceiling, and extension of revised benefits to employees covered under the Old Pension Scheme (OPS), National Pension System (NPS) and the Unified Pension Scheme (UPS).
The union has also proposed extending the One Rank One Pension principle to civilian pensioners, restoring the commuted portion of pension after 11 years instead of 15 years, increasing the full pension to 67 per cent of the last pay drawn, and raising the family pension to 50 per cent.
Other demands include higher age-based pension from 65 years, parity for existing pensioners, increasing leave encashment to 600 days, restoring railway concessions, providing income tax exemption on pension, and reinstating the OPS by withdrawing the NPS and UPS.
Report Expected By Mid-2027
The commission is expected to submit its report around May or June 2027 after completing consultations with stakeholders. The Centre will then examine its recommendations on the fitment factor, allowances, pension reforms, and retirement benefits before taking a decision on implementation. With consultations entering a crucial phase, the coming months are expected to be closely watched by several thousands of serving central government employees and pensioners.
