8th Pay Commission Update: Employees Write to PM Modi Demanding OPS Restoration Before Salary and Pension Hike

Ever since the announcement of the 8th Pay Commission, nearly 50 lakh central government employees and 69 lakh pensioners have been eagerly waiting for clarity on the next big salary revision and pension hike. While discussions about how much salaries will increase continue to dominate employee groups, another demand has become even louder—the reinstatement of the Old Pension Scheme (OPS).

In a major development, the National Council–Joint Consultative Machinery (NC JCM) has written a formal letter to Prime Minister Narendra Modi and the Finance Secretary. The letter urges the government to take immediate decisions on several crucial issues affecting employees and pensioners nationwide.
However, the central focus of the letter is the demand for the restoration of OPS before the 8th Pay Commission is fully implemented.

Why Employees Want OPS Back

The transition from OPS to the New Pension Scheme (NPS) has been a point of concern for several years. Under the OPS, retirees received a guaranteed pension—typically 50% of their last drawn salary—ensuring financial security in old age. NPS, on the other hand, links pension payouts to market performance, creating uncertainty about post-retirement income.

Employee unions argue that:

• NPS does not offer a guaranteed pension, which causes insecurity among retirees

• Market-linked returns expose government employees to financial risk

• Rising inflation requires a stable pension system, which OPS provides

• Employees who have spent their entire working life serving the government deserve predictable retirement benefits

According to NC JCM, employee dissatisfaction with NPS is rising rapidly. The council states that unless OPS is restored, the implementation of the 8th Pay Commission will not fully address employee concerns about financial stability.

What the NC JCM Letter Demands

The letter sent to PM Modi contains several key demands that, if accepted, could significantly impact the lives of both serving and retired employees:

1. Old Pension Scheme Restoration

The top priority is bringing OPS back before the rollout of the 8th Pay Commission. The council believes that OPS provides long-term security and reduces stress among employees nearing retirement.

2. Improvement in Pay Structure

The letter highlights the need for strengthening the pay matrix under the 8th Pay Commission, ensuring better salary progression and fair compensation across grades.

3. Review of Allowances

Employee unions want a comprehensive review of all allowances, many of which have not been revised in years. They argue that allowances must reflect current living costs and inflation.

4. Pension Fixation Issues

The council also raised concerns about irregularities and complications in pension fixation under NPS. They demand simplified, transparent rules to ensure retirees receive fair and timely benefits.

Why This Matters for Millions of Families

The decisions taken now will determine the financial future of 1.19 crore people, including employees and pensioners. Salary revisions under the 8th Pay Commission could increase monthly earnings substantially, but unless pension reforms are addressed simultaneously, many families may continue to face uncertainty regarding post-retirement income.

The growing demand for OPS restoration is not limited to central employees alone. Several state governments have already implemented or announced steps toward bringing back the Old Pension Scheme for their workforce. This has intensified pressure on the central government to reconsider its stance on NPS.

What Happens Next?

All eyes are now on the central government’s response. Two key decisions are awaited:

✔ Will the government restore the Old Pension Scheme?

✔ When will the 8th Pay Commission release its official recommendations?

Employee organizations hope for a positive response, especially since both issues directly impact financial security after retirement. If OPS is restored, it could become one of the most significant policy shifts for government employees in recent years.

For now, central employees and pensioners continue to wait, hoping that the government takes decisive action that addresses their long-standing concerns and ensures a stable financial future.