8th Pay Commission: There is news of relief for central government pensioners. The period of the 7th Pay Commission is ending on 31 December 2025 and after that the 8th Pay Commission is likely to be implemented. If the government approves 1.92 or 2.28 fitment factor, then there will be a significant increase in pension. Pensioners who retired in old pay grades will especially benefit from this. However, the final decision will be taken by the Central Government. Till then pensioners will have to wait.
How is the new pension decided?
Last time, the Fitment Factor 2.57 was fixed in the 7th Pay Commission. That is, the basic pension received under the 6th Pay Commission was folded by 2.57. Similarly, pension will be fixed on the basis of fitment factor in the 8th Pay Commission. Different organizations have suggested a fitment factor from 1.92 to 3.86. It is expected that the possible increase in the fitment factor can be 1.92 and 2.28.
Pension in 7th Pay Commission
Minimum pension: Rs 9,000
Maximum pension: Rs 1,25,000
Minimum Basic Salary: Rs 18,000
Maximum Basic Salary: Rs 2,50,000
Which employees were estimated for pension?
Calculation of potential pension for certain pay grade employees here has been done here. I am involved in retiring under the Grade 2000, 2800, 4200, and 4800. The new pension is estimated below on their current pension and fitment factor.
Pay Grade 2000 (Level 3)
Current pension Rs 13,000
On 1.92 Factor: Rs 24,960
On 2.28 Factor: Rs 27,040
Current pension Rs 16,000
On 1.92 Factor: Rs 30,720
On 2.28 Factor: Rs 33,280
Pay grade 2800
Level 4 (Pension Rs 15,700)
On 1.92 Factor: Rs 30,140
On 2.28 Factor: Rs 32,656
Level 5 (Pension 20,800)
On 1.92 Factor: Rs 39,936
On 2.28 Factor: Rs 43,264
Pay Grade 4200 (Level 6)
On 1.92 Factor: Rs 54,624
On 2.28 Factor: Rs 59,176
On 1.92 Factor: Rs 59,712
On 2.28 Factor: Rs 64,688
Pay Grade 4800 (Level 8)
Pension Rs 32,050
On 1.92 Factor: Rs 61,536
On 2.28 Factor: Rs 66,664
Pension Rs 37,150
On 1.92 Factor: Rs 71,328
On 2.28 Factor: Rs 77,272
When will the 8th Pay Commission apply?
The recommendations of the 8th Pay Commission may come after December 2025, but it may take the government to take 2026 or more time to implement it. A report is prepared for this in which suggestions from central employee organizations and departments are taken. It is then applied after the approval of the cabinet.
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