8th Central Pay Commission

8th Central Pay Commission: A Crucial Opportunity for Pensioners of Odisha

By Lokanath Mishra, Chief Adviser, All India Pensioners’ Association of CBIC

The constitution of the Eighth Central Pay Commission (8th CPC) by the Government of India has generated considerable hope and expectation among Central Government employees and pensioners throughout the country. The recommendations of every Pay Commission have a direct bearing on the financial security, social welfare, and quality of life of serving employees and retired personnel. For pensioners, who largely depend upon pension and retirement benefits in their advancing years, the 8th CPC assumes special significance.

The 8th Central Pay Commission has been constituted under the Chairpersonship of Justice Ranjana Prakash Desai and has been entrusted with examining matters relating to pay, allowances, pension, and retirement benefits of Central Government employees and pensioners. The Commission is presently engaged in collecting views and suggestions from stakeholders and is undertaking consultations at various places across the country before finalizing its recommendations.

The proposed visit of the Commission to Bhubaneswar on 6th and 7th July 2026 provides a historic opportunity for pensioners’ associations, employees’ organizations, and federations in Odisha to place their grievances, expectations, and suggestions directly before the Commission. It is an occasion that should be utilized effectively and collectively by all pensioners’ organizations.

Odisha’s Long-Pending CGHS Issues

One of the most important issues that deserves immediate attention is the continued neglect of Odisha in the matter of healthcare facilities under the Central Government Health Scheme (CGHS). Despite the growing population of Central Government pensioners in the State, CGHS infrastructure in Odisha remains grossly inadequate when compared with several other States.

The pensioners’ associations should strongly urge the 8th CPC to recommend the establishment of additional CGHS Wellness Centres in major cities of Odisha, particularly at Rourkela, Puri, Balasore and other locations where large numbers of Central Government pensioners reside. Many elderly pensioners are compelled to travel long distances to avail themselves of medical facilities, causing unnecessary hardship, expenditure, and physical inconvenience.

The Commission should also recommend the empanelment of leading private hospitals in Odisha, such as Apollo Hospital, CARE Hospital, and Manipal Hospital, under the CGHS network so that pensioners can avail quality healthcare services without difficulty.

Healthcare is one of the most critical concerns of senior citizens. Therefore, the Commission should be persuaded to recommend equitable expansion of CGHS facilities in Odisha so that pensioners of the State are not deprived of healthcare benefits available elsewhere in the country.

Extension of CGHS Facilities to Pensioners of Autonomous Educational Institutions

Another important demand relates to retired employees of autonomous educational institutions funded by the Central Government. Many such pensioners are denied CGHS benefits despite having devoted their careers to institutions serving national educational objectives.

The pensioners’ associations should demand that pensioners of autonomous educational institutions receiving Central Government support be granted CGHS facilities on the same terms and conditions as other Central Government pensioners. There should be no discrimination in healthcare facilities among pensioners merely on account of the nature of the institution in which they served.

Restoration of Long-Pending Pensioners’ Benefits

As highlighted by the All India Pensioners’ Association of the Central Board of Indirect Taxes and Customs (CBIC), several long-pending demands of pensioners require urgent consideration by the 8th CPC.

Among the important demands are:

1. Grant of an annual increment at the rate of 5% every year to pensioners to compensate for the continuous increase in the cost of living.
2. Extension of Leave Travel Concession (LTC) facilities to pensioners, particularly senior citizens, enabling them to travel and maintain social and family connections during retirement.
3. Grant of House Rent Allowance (HRA), or a suitable compensatory allowance, to pensioners residing in rented accommodation, particularly in metropolitan and urban areas where rental costs have increased substantially.
4. Substantial enhancement of the Fixed Medical Allowance (FMA), considering the steep increase in medical expenses and healthcare costs. The present rate of FMA is wholly inadequate to meet even the basic healthcare requirements of pensioners.
5. Maintenance of complete parity between pre- and post-8th CPC pensioners. Pensioners who retired before 01.01.2026 should be granted the benefit of notional increments from 01.01.2016 for the purpose of pension fixation and revision so that no pensioner suffers financial disadvantage merely because of the date of retirement.

Income Tax Relief for Pensioners

Pensioners’ associations should also place before the Commission the growing financial burden caused by taxation of retirement-related income.

The Commission may be requested to recommend:

• Exemption of pension income from Income Tax fully .
• Exemption of interest earned on bank deposits maintained by senior citizen pensioners.
• Exemption of Fixed Medical Allowance (FMA) from Income Tax, since the allowance is intended solely to meet medical expenses and should not be treated as taxable income.

Such measures would provide meaningful financial relief to elderly pensioners who often face increasing healthcare and living expenses while having limited avenues for augmenting their income.

Demand for Interim Relief

One of the most urgent demands presently being raised by the All India Pensioners’ Association of CBIC and several other pensioners’ organizations is the grant of Interim Relief pending submission and implementation of the recommendations of the 8th CPC.

Historically, there has often been a considerable time gap between the constitution of a Pay Commission and the actual implementation of its recommendations. During this period, employees and pensioners continue to face the adverse effects of inflation and rising living costs.

Therefore, all pensioners’ associations should collectively demand that the Government sanction Interim Relief immediately to pensioners and serving employees until the recommendations of the 8th CPC are finalized and implemented. Such relief would help mitigate the adverse effects of inflation and provide immediate financial support to retirees.

Need for a Common Charter of Demands

The forthcoming interaction with the 8th CPC should not be approached in a fragmented manner. Pensioners’ associations across Odisha and throughout India should coordinate with one another and prepare a common charter of demands covering:

• Pension revision and parity between pre- and post-retirees.
• Grant of notional increments from 01.01.2016 for pension fixation.
• Annual increment of 5% to pensioners.
• Expansion of CGHS facilities in Odisha.
• Empanelment of major private hospitals under CGHS.
• Extension of CGHS facilities to pensioners of autonomous educational institutions.
• Enhanced medical benefits.
• Substantial increase in Fixed Medical Allowance.
• LTC and HRA facilities for pensioners.
• Income Tax relief for pensioners.
• Interim Relief pending implementation of the 8th CPC recommendations.
• Improved family pension provisions.
• Simplification of pension procedures and strengthening of grievance redressal mechanisms.

A united and well-reasoned representation, supported by facts and data, is more likely to receive favourable consideration from the Commission.

Conclusion

The visit of the 8th Central Pay Commission to Bhubaneswar offers an unprecedented opportunity for pensioners of Odisha to place their genuine concerns before the national policy-making body entrusted with shaping the future of pay and pension administration. Pensioners’ associations must rise above organizational differences and present a common, constructive, and persuasive case.

Particular emphasis should be placed on the expansion of CGHS facilities in Odisha, empanelment of reputed hospitals, extension of healthcare benefits to pensioners of autonomous educational institutions, enhancement of Fixed Medical Allowance, grant of annual increments, LTC and HRA facilities, Income Tax relief, pension parity, and Interim Relief.

The recommendations of the 8th CPC will influence the lives of millions of pensioners for the next decade and beyond. It is therefore imperative that pensioners’ associations make full use of the Bhubaneswar consultation to ensure that the voice of pensioners is heard clearly, effectively, and unitedly in the pursuit of justice, dignity, equality, and social security in retirement.