8th Pay Commission: Government Employees Demand Old Pension, Better Retirement Benefits and Education Support—Will the Centre Relent?

In a major development concerning the long-anticipated 8th Central Pay Commission, government employees across the country have presented a set of strong demands to the Centre. The move follows the government's announcement, made six months ago, about the formation of the commission to revise the pay structure, allowances, and benefits of central government employees.

Now, employee unions and representatives are voicing key recommendations—ranging from the restoration of the Old Pension Scheme (OPS) to enhanced retirement perks and better welfare benefits for both serving employees and pensioners.

Key Demands from Government Employees to the 8th Pay Commission: 1. Restoration of the Old Pension Scheme (OPS)

A major point of contention has been the National Pension System (NPS), which replaced OPS in 2004. Employees who joined government service after January 1, 2004, have been voicing dissatisfaction with NPS, primarily due to the lack of assured pension benefits and volatility in returns.
The employees now demand a complete rollback of the NPS and restoration of the guaranteed pension system under OPS. This demand has gained political and social traction in recent years and is likely to be a central issue in upcoming discussions.

2. Improved Retirement Benefits

Apart from pensions, employee bodies are calling for enhanced gratuity limits, commutation benefits, and reduction in the qualifying years for full pension eligibility. There's also a proposal to bring parity between pre-2016 and post-2016 retirees under the 7th Pay Commission.

3. Cashless Medical Facilities for Employees & Pensioners

Health and medical security remains another priority. Government staff and retirees are pushing for cashless healthcare services through empaneled hospitals, both under the CGHS (Central Government Health Scheme) and private hospital networks. The current reimbursement model, they argue, is outdated and financially stressful.

4. Education Support for Employees’ Children

Among welfare-centric proposals is a request for educational allowance up to the postgraduate level for employees’ children. Many are also seeking hostel subsidies for those who send their children to institutions in other cities. Currently, the education allowance is limited and only extends till Class XII.

What's Next for the 8th Pay Commission?

While the central government has remained non-committal on accepting the above demands, sources suggest that several of these issues are under review. Analysts believe that the restoration of OPS, although financially challenging for the government, might be taken up selectively—especially considering its growing popularity in several states that have already reintroduced the scheme for their employees.

The 8th Pay Commission is expected to submit its recommendations before the next general elections, and any positive decision could influence over 1 crore government employees and pensioners.

Why These Demands Matter

• Cost of Living: Rising inflation, medical expenses, and educational costs are pushing employees to demand better financial security.

• Social Security: The shift from OPS to NPS is viewed by many as a dilution of social safety nets, prompting calls for course correction.

• Workforce Motivation: Better post-retirement benefits are crucial for workforce morale and long-term motivation, especially in public sector roles.

Final Thoughts

As the 8th Pay Commission begins deliberations, the Centre faces mounting pressure to address long-standing concerns of its employees. Whether the government bends to these demands remains to be seen, but the tone set by these negotiations could shape the financial future of millions of Indian families connected to the central administration.