8th Pay Commission: Demand for 67% pension and 50% family pension for 6.8 million (68 lakh) pensioners..

8th Pay Commission Pension Hike: Expectations regarding the 8th Pay Commission have risen among both government employees and pensioners. Employee and pensioner organizations have demanded a minimum basic pension of ₹45,000, a pension equivalent to 67% of the last drawn salary, and a family pension set at 50% of the last drawn salary. Furthermore, if the government implements a fitment factor of 2.0, 2.25, or 2.57—as requested—how much might the current basic pension (ranging from ₹25,000 to ₹75,000) increase? Let’s explore the potential benefits for millions of pensioners under the 8th Pay Commission.

Benefits for 6.8 Million (68 Lakh) Pensioners

The 8th Pay Commission is expected to benefit 4.8 million (48 lakh) central government employees and 6.8 million (68 lakh) pensioners. This means the number of central government pensioners is approximately 40% higher than the number of serving employees. Most of these pensioners receive their pensions under the Old Pension Scheme (OPS). Consequently, once the fitment factor is determined under the 8th Pay Commission, their basic pension will also see an increase.

What are the demands of employee organizations for pensioners?

The National Council of Joint Consultative Machinery (NC-JCM) and the All India Defence Employees Federation (AIDEF) have demanded that the pension be set at 67% of the last basic salary, with a family pension at 50%. Meanwhile, the Federation of National Postal Organisations (FNPO) has requested that pension expenditures be decoupled from departmental budgets and instead be charged to the Consolidated Fund of India. The All India New Pension Scheme Employees Federation (AINPSEF) has called for the implementation of 'One Rank, One Pension' (OROP) for civil employees as well. Additionally, the Indian Railways Supervisors Association (IRTSA) has demanded the inclusion of OROP, along with retirement and death gratuities, across all pension schemes. The Bharat Pensioners Samaj (BPS) has demanded a minimum pension of ₹45,000, a pension equivalent to 67% of the last drawn salary, and a family pension set at 50% of the last drawn salary.

What is the current pension structure?

Under the Old Pension Scheme (OPS), the pension is currently 50% of either the last basic salary or the average basic salary of the 10 months preceding retirement—whichever is higher. Meanwhile, the family pension is 30% of the last basic salary. For instance, if an employee’s last basic salary is ₹1 lakh, they would receive a basic pension of ₹50,000. Organizations are demanding that this be increased to ₹67,000. Similarly, for an employee with a last basic salary of ₹1 lakh, there is a demand to increase the family pension from ₹30,000 to ₹50,000.

How much would pensions increase with a fitment factor of 2.0 to 2.57?

If a fitment factor of 2.0 is implemented under the 8th Pay Commission, a basic pension of ₹25,000 could rise to ₹50,000; a pension of ₹50,000 could become ₹1 lakh; and a pension of ₹75,000 could reach ₹1.50 lakh.

With a fitment factor of 2.25, these amounts could become ₹56,250, ₹1,12,500, and ₹1,68,750, respectively. Meanwhile, with a fitment factor of 2.57, a pension of ₹25,000 could increase to ₹64,250, a pension of ₹50,000 to ₹1,28,500, and a pension of ₹75,000 to ₹1,92,750.

It should be noted that these are merely estimates based on the demands made by various organizations. The actual increase will be determined only after the recommendations of the 8th Pay Commission are submitted and approved by the government. The Pay Commission may also make changes to these demands.

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