8th Pay Commission: Gazette mandate on NPS and UPS differs sharply from employees’ demand for OPS restoration
The 8th Pay Commission completed its visits to Kolkata and Bhubaneswar in July. The Commission is now approaching the completion of its ninth month since its constitution on 3 November 2026. This would mean that nearly half of the 18-month permitted duration of the 8th Pay Commission will be completed soon.
More consultations and discussions are expected over the next few months in various states across the country as the 8th Pay Commission moves towards finalizing its recommendations.
The Terms of Reference (ToR) for the 8th Central Pay Commission have sparked debate over pensions, as the government’s Gazette notification focuses on reviewing benefits under the National Pension System (NPS) and Unified Pension Scheme (UPS), whereas prominent employee and pensioner groups continue to seek restoration of the Old Pension Scheme (OPS).
The 8th Pay Commission and the Central government will bring about a balanced resolution to the demands of prominent employee unions, including whether to restore the Old Pension Scheme (OPS) or to review benefits under the NPS and UPS.
Gazette focus: Review existing pension framework
The Gazette notification, issued in November 2025, instructs the 8th Pay Commission to review gratuity and pension-related benefits for employees covered under both the UPS and NPS. It also seeks the 8th Pay Commission to diligently examine pension provisions for employees outside these schemes, while considering the financial burden of non-contributory pension systems.
The notification does not mention replacing NPS or UPS with OPS. In fact, it even limits the 8th Pay Commission’s mandate to review existing pension and gratuity benefits and recommend improvements in them wherever necessary.
Employees and retirees push for OPS restoration
Prominent employee unions and associations have categorically called for reforms to the country’s pension system. In its memorandum to the 8th Pay Commission, the Staff Side of the National Council–Joint Consultative Machinery (NC-JCM) has asked for a complete rollback of the NPS and UPS.
They argued that NPS makes retirement benefits entirely dependent on market performance, thus creating uncertainty for employees, calling the system discriminatory for those who joined government services post 1 January 2004.
The employee body also highlighted that, despite UPS being introduced in April 2025, only about 1.22 lakh employees, around 4.5% of the nearly 26 lakh NPS subscribers, have opted for the scheme, thus reflecting limited acceptance of the scheme.
Retiree organizations have also echoed similar views, calling for the restoration of OPS or, at the very least, a guarantee of a minimum pension, a higher government contribution and stronger safeguards to ensure predictable post-retirement income.
Most of these demands are at odds with the Gazette notification, which primarily focuses on reviewing the existing pension framework rather than replacing it.
