The last pay commission was set up in 2014 and its recommendations came into effect from January 2016.
8th Pay Commission News: The All-India Railwaymen’s Federation (AIRF) wrote a letter to the Cabinet Secretary, Government of India, demanding the restoration of the old pension system of pre-2004. This comes after the Centre introduced the New Pension System (NPS) for central government employees in January 2004, replacing the Old Pension Scheme. Since the decision was made there has been constant demands to revert to the earlier system.
The federation in its letter wrote, “…more than 20 lakh civilian central government employees are governed under the National Pension System and every month they have to contribute 10% of their basic pay and DA to the NPS. This considerably reduce their take home pay. The government has so far not agreed to our demand to scrap NPS and to restore the pension under CCS (Pension) Rules, 1972 (now 2021) to the central government employees recruited on or after 1st January, 2004.”
It important to note that the demand has been raised by the association alongside other demands like setting up the 8th Central Pay Commission, from 1st January 2026. Notably, the government in the centre, usually after every 10 years, implements new pay commission recommendations.
The last pay commission was set up in 2014 and its recommendations came into effect from January 2016.
In its letter to the union government, the AIRF also said that considering all the aspects and the requirements and also to attract qualified and talented candidates to the government service, the time has now come to immediately constitute the 8th Central Pay Commission and “to revise the pay scales/allowances/pension and other benefits” of the central government employees through mutual discussions and settlements.
What Are The Key Benefits Under Old Pension Scheme?
- Employees, under the Old Pension Scheme (OPS), receive a pension based on a fixed formula, which is equal to 50% of their last-drawn salary.
- Employees can get the benefit of biannual revision in Dearness Relief (DR).
- OPS includes a General Provident Fund (GPF), to which employees contribute a portion from their salary while in job.
- Upon retirement, they receive the total amount accumulated in the GPF over the course of their employment.