New Delhi: Tensions between the Central Government and employee unions have escalated just weeks before the Union Budget 2026. The All India Railwaymen’s Federation (AIRF) and the Confederation of Central Government Employees have issued a formal ultimatum to the Ministry of Finance, demanding immediate amendments to the Terms of Reference (ToR) of the 8th Central Pay Commission.
STRIKE WARNING: The National Council (JCM-Staff Side) has flagged that the current ToR reportedly excludes “Pension Revision” from the commission’s scope. Unions have warned of a nationwide agitation if the government does not issue a corrigendum before February 1, 2026.
1. Key Demands: Why Unions Are Angry
| Demand Category | Union Expectation |
|---|---|
| Pension Revision | Must be included in 8th CPC ToR (Currently missing). |
| Interim Relief | 20% of Basic Pay (Immediate Relief). |
| DA Merger | Merge 50% DA with Basic Pay effectively from 01.01.2024. |
| Fitment Factor | Minimum 3.68x (Rejection of 2.57x). |
2. The “Pension Exclusion” Controversy
In a letter addressed to the Cabinet Secretary, the AIRF stated that excluding 68 lakh pensioners from the purview of the 8th Pay Commission is a “breach of trust.” Historically, every Pay Commission since the 4th CPC has mandatorily reviewed the pension structure.
The Government Stance: Sources indicate the Ministry aims to separate wage revision from pension revision to reduce the fiscal burden, potentially handling pensions through a separate committee. However, unions argue this will delay benefits for years.
3. Next Steps: Agitation Schedule
Following the lunch-hour demonstrations held in December 2025, the Confederation has outlined the next phase of protests:
- Phase 1: Black Badge Day (January 20, 2026).
- Phase 2: Mass Dharna at Jantar Mantar (January 27, 2026).
- Phase 3: Indefinite Strike Notice (If Budget 2026 ignores demands).
4. Conclusion
All eyes are now on the Finance Minister’s Budget Speech. If the government announces the “Interim Relief” or amends the ToR, the strike may be averted. Employees are advised to track union circulars for real-time updates.