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8th Pay Commission: Defense employees get big confidence, can get the status of central employee till retirement

May 22, 2026 by Uma Shankar

About 62 thousand defense employees, who are currently working on deemed deputation in seven defense PSUs, are pinning their hopes on retaining their status as central government employees. Their hopes have increased because in the 49th meeting of the National Council-Joint Consultative Machinery (NC-JCM) held this month, Cabinet Secretary TV Somanathan has assured to support their demand.

C Srikumar, Secretary of All India Defense Employees Federation (AIDEF) presented the side of defense civilian employees in this meeting. He said that about 62,000 employees want to retain the status of central government employee so that they can continue to get job security, better salary and retirement benefits. Especially the benefits received from the 8th Pay Commission are considered better than those of PSU employees.

Employees were sent to PSU in 2021

Sreekumar said that in October 2021, employees of 41 production units of ordnance factories were sent on five-year deemed deputation to seven new defense PSUs. This period ends on 30 September 2026.

He says that the Central Government had assured these employees in the Madras High Court that their status as Central Government employees will remain intact, but till now no official notification has been issued in this regard.

What assurance did the Cabinet Secretary give?

According to AIDEF, the Cabinet Secretary has assured that a committee of secretaries will recommend to the Empowered Group of Ministers (EGOM) to extend the deemed deputation of defense civilian employees till retirement. After this assurance, the employees are hopeful that the government can issue a notification soon.

What will be the benefits of maintaining the status of central employee?

AIDEF says that if these employees retain their status as central government employees, they will get many big benefits.

  • Job security will remain till retirement
  • If a PSU is closed then you can get an alternative job in the Central Government.
  • Will get the benefit of salary security
  • Child care leave, paternity leave, LTC and medical facilities will be better.
  • Will get the benefit of 8th Pay Commission
  • Salary in PSUs depends on the profits and losses of the company, whereas government employees get the benefit of pay commission.

Security is also provided by the Constitution

AIDEF said that the services of central government employees are protected under Articles 309, 310 and 311 of the Constitution of India. This is the reason why the employees want to maintain their government status.

About Uma Shankar

Uma Shankar writes about finance, business, and investment topics. He simplifies complex subjects like stock market, banking, tax, and cryptocurrency to help readers make informed financial decisions. Data-driven reporting is his strength.

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