India's 8th Pay Commission faces employee push to revive Old Pension Scheme amid NPS concerns

The 8th Pay Commission, constituted in November 2025, has entered its consultation phase six months after its launch and has about 18 months left to submit its report. Alongside discussions on salary hikes and the fitment factor—some unions have asked for a factor of 4.0—the commission is dealing with renewed employee demands to scrap the National Pension System (NPS) and restore the Old Pension Scheme (OPS). OPS would provide a fixed, inflation‑linked pension for retirees, which unions argue offers greater financial security.

Officials note that about ₹16.5 lakh crore has already been invested in NPS through institutions such as LIC, SBI and UTI. A sudden reversal could strain market liquidity and pressure financial institutions, making a complete rollback unlikely. The commission is expected to focus on salary revisions and fitment factor recommendations while the feasibility of reinstating OPS remains doubtful.