8th Pay Commission Pension Calculations: What may be your revised pension if your current basic pension is Rs 15,250, Rs 20,200, Rs 32,050, or Rs 40,000?
8th Pay Commission Calculations: With the 8th Pay Commission already announced, pensioners also have high hopes for it. They saw their pension increase by 2.57 times in the 7th Pay Commission. The minimum pension rose to Rs 9,000. What may be their revised pension in the new pay commission at fitment factors of 1.92, 2.08 and 2.57 if their current basic pension is Rs 15,250, Rs 20,200, Rs 32,050, Rs 40,000, Rs 44,900, or Rs 50,500?
8th Pay Commission Calculations: A pay commission is not only an important event to track for salaried employees, but it is also a relevant occasion for pensioners, who keenly want to see a substantial rise in their pension. After all, a pension is the main source of income for the majority of pensioners in India. A regular monthly pension is what gives them financial freedom, a sense of self-belief, and confidence to live life with honour. In the 7th Pay Commission, the minimum pension rose to Rs 9,000. But as the 8th Pay Commission formation is just around the corner, what may be their revised pension in the new pay commission at fitment factors of 1.92, 2.08 and 2.57 if their current basic pension is Rs 15,250, Rs 20,200, Rs 32,050, Rs 40,000, Rs 44,900, or Rs 50,500.
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(Disclaimer: These calculations are projections. Actual revised pensions may vary.)
How pensions are revised in pay commission
Salaries and pensions of central government employees are revised on the basis of fitment factor. It was the barometer for the 7th Pay Commission and is likely to be the same for the 8th Pay Commission.
What is fitment factor for central government employees?
A fitment factor is a multiplier that is used to calculate the revised basic pays and pensions for government employees. The fitment factor determines the new salary by multiplying the current basic salary by the fitment factor.
How pensions increased from 6th Pay Commission to 7th Pay Commission
With a fitment factor of 2.57 for the 7th Pay Commission, the minimum basic pension increased to Rs 18,000 from Rs 7,000. On the other hand, the maximum pension, which is given to the cabinet secretary, rose to Rs 1,25,000 from Rs 90,000.
Is basic pension only amount pensioners get?
A pensioner also gets dearness relief (DR) along with their basic salary. The DR is revised twice a year alongside the dearness allowance (DA). The current DR rate is 53 per cent.
What is additional pension?
The concept of an additional pension was introduced in the 6th Pay Commission, where a pensioner gets an additional pension after 80 years of age. Here are rates for the additional pension:
80 years to <85 years: 20 per cent of basic pension
85 years to <90 years: 30 per cent of basic pension
90 years to <95 years: 40 per cent of basic pension
95 years to <100 years: 50 per cent of basic pension
100 years and more: 100 per cent of basic pension
What can be possible rise in pensions in 8th Pay Commission?
The fitment factor is likely to be the barometer to calculate revised pensions again. Since the 8th Pay Commission is yet to be formed, the fitment factor is yet to be decided. However, as per recommendations by different organisations and departments, some of the prescribed fitment factors for the 8th Pay Commissions are 1.92, 2.08, 2.28, 2.57, and 2.86.
When can pension revision decision for 8th Pay Commission be taken?
The 8th Pay Commission will be formed. It will give its recommendations to the Cabinet. The recommendations will also have revised salary and pension slabs. Once the cabinet gives its go-ahead, the revised pension slabs will be implemented.
How much time it may take?
The tenure of the 7th Pay Commission will end on December 31, 2025. Effectively, the 8th Pay Commission should be implemented from the next day of it. However, the Centre is yet to provide information about it.
Calculations for revised pensions
In our story, we will calculate estimated revised pensions for the 8th Pay Commission for pensioners with current basic pensions of Rs 15,250, Rs 20,200, Rs 32,050, Rs 40,000, Rs 44,900, and Rs 50,500. We will calculate these revised pensions at fitment factors of 1.92, 2.08 and 2.57.
Estimated revised pension for Rs 15,250 basic pay
| Basic pension | ₹ 15,250.00 |
| Revised Basic pension (at 1.92 fitment factor) | ₹ 29,280.00 |
| Revised Basic pension (at 2.08 fitment factor) | ₹ 31,720.00 |
| Revised Basic pension (at 2.57 fitment factor) | ₹ 39,192.50 |
Estimated revised pension for Rs 20,200 basic pay
| Basic pension | ₹ 20,200.00 |
| Revised Basic pension (at 1.92 fitment factor) | ₹ 38,784.00 |
| Revised Basic pension (at 2.08 fitment factor) | ₹ 42,016.00 |
| Revised Basic pension (at 2.57 fitment factor) | ₹ 51,914.00 |
Estimated revised pension for Rs 32,050 basic pay
| Basic pension | ₹ 32,050.00 |
| Revised Basic pension (at 1.92 fitment factor) | ₹ 61,536.00 |
| Revised Basic pension (at 2.08 fitment factor) | ₹ 66,664.00 |
| Revised Basic pension (at 2.57 fitment factor) | ₹ 82,368.50 |
Estimated revised pension for Rs 40,000 basic pay
| Basic pension | ₹ 40,000.00 |
| Revised Basic pension (at 1.92 fitment factor) | ₹ 76,800.00 |
| Revised Basic pension (at 2.08 fitment factor) | ₹ 83,200.00 |
| Revised Basic pension (at 2.57 fitment factor) | ₹ 1,02,800.00 |
Estimated revised pension for Rs 44,900 basic pay
| Basic pension | ₹ 44,900.00 |
| Revised Basic pension (at 1.92 fitment factor) | ₹ 86,208.00 |
| Revised Basic pension (at 2.08 fitment factor) | ₹ 93,392.00 |
| Revised Basic pension (at 2.57 fitment factor) | ₹ 1,15,393.00 |
Estimated revised pension for Rs 50,500 basic pay
| Basic pension | ₹ 50,500.00 |
| Revised Basic pension (at 1.92 fitment factor) | ₹ 96,960.00 |
| Revised Basic pension (at 2.08 fitment factor) | ₹ 1,05,040.00 |
| Revised Basic pension (at 2.57 fitment factor) | ₹ 1,29,785.00 |