Will Pre-2026 Retirees be Covered Under the 8th Pay Commission? Ministry of Finance Clarifies
In a recent address to the Rajya Sabha, the Ministry of Finance clarified the legal standing of the Finance Act, 2025, regarding pensioner distinctions. The Government emphasized that pensions continue to be governed by the Central Civil Services (Pension) Rules, 2021, and that the Finance Act primarily validates existing principles for liabilities met from the Consolidated Fund of India without altering current Civil or Defence pension structures. While Central Pay Commissions (CPCs) function as expert bodies that may recommend different scales for various categories, the Ministry noted that revision of pension is consistently managed through general orders issued during the implementation of accepted CPC recommendations.
Regarding the progress of the 8th Central Pay Commission, the Government confirmed that the Commission was officially constituted with its Terms of Reference (ToR) on November 3, 2025. This mandate includes making recommendations on pay, allowances, and pensions for Central Government employees, which encompasses those who retired on or before December 31, 2025. The Commission has been given a timeframe of 18 months from its constitution date to finalize and submit its recommendations, effectively addressing concerns regarding the timeline and coverage for pre-2026 retirees.
Rajya Sabha QA
MINISTRY OF FINANCE
DEPARTMENT OF EXPENDITURE
RAJYA SABHA
UNSTARRED QUESTION NO. 398
TO BE ANSWERED ON 3rd FEBRUARY, 2026/14 Magha, 1947 (Saka)
DISTINCTION AMONG PENSIONERS
QUESTION
- Shri Javed Ali Khan:
Will the Minister of Finance be pleased to state:
a) whether Finance Bill, 2025 has authorized the Central Government to establish distinctions among pensioners on the basis of date of retirement and a distinction may also be made amongst pensioners which may emanate from accepted recommendations of the Central Pay Commissions;
b) if so, the details thereof and reasons therefor;
c) whether Central Government pensioners who retired on or before 31st December, 2025 are covered for revision of their pension under 8th Central Pay Commission;
d) whether 8th CPC has started functioning on regular basis; and
e) if so, the details thereof and if not, the reasons for delay?
ANSWER
MINISTER OF STATE FOR FINANCE
(SHRI PANKAJ CHOUDHARY)
(a) and (b): The Pension of the Central Government employees is governed by the Central Civil Services (Pension) Rules, 2021 (erstwhile CCS (Pension) Rules, 1972) and the Central Civil Services (Extraordinary Pension) Rules, 2023 and instructions issued from time to time for matters connected therewith. Revision of pension is carried out through general orders issued by the Central Government, inter alia, for implementation of the accepted recommendations of the Central Pay Commission.
The Central Pay Commissions being expert bodies, recommend different pay scales, allowances and pension for different categories of the Government employees. The Part-IV of Finance Act, 2025 has validated the existing Central Civil Services (Pension) Rules and principles governing pension liabilities met from the Consolidated Fund of India and does not alter or change existing Civil or Defence pensions.
(c), (d) & (e): Government has already notified the constitution of the 8th Central Pay Commission (CPC) along-with its Terms of Reference (ToR) vide Resolution dated 03.11.2025. As per Resolution dated 03.11.2025, Commission will make its recommendations within 18 months of its constitution.
The 8th CPC has been mandated to make its recommendations on Pay, Allowances, Pension, etc. of the Central Government employees.
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