8th Pay Commission Pension Calculations: Can basic pension be more than Rs 2.75 lakh in new Pay Commission? See how it may be possible
8th Pay Commission Calculator: Basic pay scales for pensioners are also revised in a new pay Commission. In the 7th Pay Commission, the maximum monthly pension was increased to Rs 1.25 lakh. Can it reach beyond Rs 2.75 lakh in the 8th Commission? See possibilities!
8th Pay Commission Calculator: Monthly pension provides financial freedom to a lot of pensioners across India whose only source of income at that stage of life can only be that income. If they have a decent pension, they don't have to depend on others to run their daily expenses. Central and state governments provide pensions to the retirees under the old pension system and the National Pension Systems. Unified Pension Scheme (UPS) will also be available to government employees from April 1, 2025. As far as central government employees are concerned, those who joined after December 31, 2003, can get the pension only NPS. When the 7th Pay Commission was implemented in the year 2016, the minimum basic monthly pension saw a rise to Rs 9,000. On the other hand, the maximum basic pension was increased to Rs 1.25 lakh. Since Prime Minister Narendra Modi has announced the 8th Pay Commission, basic pensions may see a significant rise. There are chances that the maximum basic pension may easily be more than Rs 2.75 lakh. Know how it may be possible.
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(Disclaimer: These are projections. Actual calculations may vary.)
What is 8th Pay Commission?
Prime Minister Narendra Modi announced that the 8th Pay Commission would come. He didn't get any date when it would be implemented.
When will 7th Pay Commission end?
A pay commission is for 10 years. The 7th Pay Commission was implemented on January 1, 2016. It is scheduled to end on December 31, 2025.
Will 8th Pay Commission be implemented on January 1, 2026?
The norm is that the new pay commission is implemented from the next day of the culmination of the previous commission. So, the 8th Pay Commission should come into existence on January 1, 2026. But so far, there is no information about it from the finance ministry's side. The central government is yet to form a commission.
How does a pay commission work?
It has a chairman and members nominated by the central government. They can be from bureaucracy, or they can be experts in their respective fields. They form a report that goes to the cabinet. Once the cabinet approves it, the commission is implemented.
How is pension amount revised in pay commission?
The pension amount is revised on the basis of the fitment factor. The existing pension is multiplied by the fitment factor to decide the revised pension. The same logic applied first or the monthly salary also.
How is fitment factor calculated?
The fitment factor is calculated by dividing the current basic salary (including grade pay) from the revised basic pay. The fitment factor remains the same for all central government employees.
What is fitment factor for 7th Pay Commission?
The fitment factor for the 7th Pay Commission is 2.57.
Will fitment factor be 2.57 for 8th Pay Commission?
It can't be said at this point in time. There are talks that it can be 1.92, 2.28, 2.57, or 2.86. But it will be known after the Pay Commission's recommendations get the go-ahead.
Calculations for the story
We will calculate possible revised monthly basic pensions on the basis of fitment factors 1.92, 2.28, 2.57, and 2.86. The calculations will be for all 18 pay scales of the central government.
Projected basic pensions at 1.92 fitment factor
| At 1.92 fitment factor | ||
| Grade | Current basic pension | Projected basic pension |
| Level 1 | ₹ 9,000.00 | ₹ 17,280.00 |
| Level 2 | ₹ 9,950.00 | ₹ 19,104.00 |
| Level 3 | ₹ 10,850.00 | ₹ 20,832.00 |
| Level 4 | ₹ 12,750.00 | ₹ 24,480.00 |
| Level 5 | ₹ 14,600.00 | ₹ 28,032.00 |
| Level 6 | ₹ 17,700.00 | ₹ 33,984.00 |
| Level 7 | ₹ 22,450.00 | ₹ 43,104.00 |
| Level 8 | ₹ 23,800.00 | ₹ 45,696.00 |
| Level 9 | ₹ 26,550.00 | ₹ 50,976.00 |
| Level 10 | ₹ 28,050.00 | ₹ 53,856.00 |
| Level 11 | ₹ 33,850.00 | ₹ 64,992.00 |
| Level 12 | ₹ 39,400.00 | ₹ 75,648.00 |
| Level 13 | ₹ 59,250.00 | ₹ 1,13,760.00 |
| Level 13 | ₹ 65,550.00 | ₹ 1,25,856.00 |
| Level 14 | ₹ 72,100.00 | ₹ 1,38,432.00 |
| Level 15 | ₹ 91,100.00 | ₹ 1,74,912.00 |
| Level 16 | ₹ 1,02,700.00 | ₹ 1,97,184.00 |
| Level 17 | ₹ 1,12,500.00 | ₹ 2,16,000.00 |
| Level 18 | ₹ 1,25,000.00 | ₹ 2,40,000.00 |
Projected basic pensions at 2.28 fitment factor
| At 2.28 fitment factor | ||
| Grade | Current basic pension | Projected basic pension |
| Level 1 | ₹ 9,000.00 | ₹ 20,520.00 |
| Level 2 | ₹ 9,950.00 | ₹ 22,686.00 |
| Level 3 | ₹ 10,850.00 | ₹ 24,738.00 |
| Level 4 | ₹ 12,750.00 | ₹ 29,070.00 |
| Level 5 | ₹ 14,600.00 | ₹ 33,288.00 |
| Level 6 | ₹ 17,700.00 | ₹ 40,356.00 |
| Level 7 | ₹ 22,450.00 | ₹ 51,186.00 |
| Level 8 | ₹ 23,800.00 | ₹ 54,264.00 |
| Level 9 | ₹ 26,550.00 | ₹ 60,534.00 |
| Level 10 | ₹ 28,050.00 | ₹ 63,954.00 |
| Level 11 | ₹ 33,850.00 | ₹ 77,178.00 |
| Level 12 | ₹ 39,400.00 | ₹ 89,832.00 |
| Level 13 | ₹ 59,250.00 | ₹ 1,35,090.00 |
| Level 13 | ₹ 65,550.00 | ₹ 1,49,454.00 |
| Level 14 | ₹ 72,100.00 | ₹ 1,64,388.00 |
| Level 15 | ₹ 91,100.00 | ₹ 2,07,708.00 |
| Level 16 | ₹ 1,02,700.00 | ₹ 2,34,156.00 |
| Level 17 | ₹ 1,12,500.00 | ₹ 2,56,500.00 |
| Level 18 | ₹ 1,25,000.00 | ₹ 2,85,000.00 |
Projected basic pensions at 2.57 fitment factor
| At 2.57 fitment factor | ||
| Grade | Current basic pension | Projected basic pension |
| Level 1 | ₹ 9,000.00 | ₹ 23,130.00 |
| Level 2 | ₹ 9,950.00 | ₹ 25,571.50 |
| Level 3 | ₹ 10,850.00 | ₹ 27,884.50 |
| Level 4 | ₹ 12,750.00 | ₹ 32,767.50 |
| Level 5 | ₹ 14,600.00 | ₹ 37,522.00 |
| Level 6 | ₹ 17,700.00 | ₹ 45,489.00 |
| Level 7 | ₹ 22,450.00 | ₹ 57,696.50 |
| Level 8 | ₹ 23,800.00 | ₹ 61,166.00 |
| Level 9 | ₹ 26,550.00 | ₹ 68,233.50 |
| Level 10 | ₹ 28,050.00 | ₹ 72,088.50 |
| Level 11 | ₹ 33,850.00 | ₹ 86,994.50 |
| Level 12 | ₹ 39,400.00 | ₹ 1,01,258.00 |
| Level 13 | ₹ 59,250.00 | ₹ 1,52,272.50 |
| Level 13 | ₹ 65,550.00 | ₹ 1,68,463.50 |
| Level 14 | ₹ 72,100.00 | ₹ 1,85,297.00 |
| Level 15 | ₹ 91,100.00 | ₹ 2,34,127.00 |
| Level 16 | ₹ 1,02,700.00 | ₹ 2,63,939.00 |
| Level 17 | ₹ 1,12,500.00 | ₹ 2,89,125.00 |
| Level 18 | ₹ 1,25,000.00 | ₹ 3,21,250.00 |
Projected basic pensions at 2.86 fitment factor
| At 2.86 fitment factor | ||
| Grade | Current basic pension | Projected basic pension |
| Level 1 | ₹ 9,000.00 | ₹ 25,740.00 |
| Level 2 | ₹ 9,950.00 | ₹ 28,457.00 |
| Level 3 | ₹ 10,850.00 | ₹ 31,031.00 |
| Level 4 | ₹ 12,750.00 | ₹ 36,465.00 |
| Level 5 | ₹ 14,600.00 | ₹ 41,756.00 |
| Level 6 | ₹ 17,700.00 | ₹ 50,622.00 |
| Level 7 | ₹ 22,450.00 | ₹ 64,207.00 |
| Level 8 | ₹ 23,800.00 | ₹ 68,068.00 |
| Level 9 | ₹ 26,550.00 | ₹ 75,933.00 |
| Level 10 | ₹ 28,050.00 | ₹ 80,223.00 |
| Level 11 | ₹ 33,850.00 | ₹ 96,811.00 |
| Level 12 | ₹ 39,400.00 | ₹ 1,12,684.00 |
| Level 13 | ₹ 59,250.00 | ₹ 1,69,455.00 |
| Level 13 | ₹ 65,550.00 | ₹ 1,87,473.00 |
| Level 14 | ₹ 72,100.00 | ₹ 2,06,206.00 |
| Level 15 | ₹ 91,100.00 | ₹ 2,60,546.00 |
| Level 16 | ₹ 1,02,700.00 | ₹ 2,93,722.00 |
| Level 17 | ₹ 1,12,500.00 | ₹ 3,21,750.00 |
| Level 18 | ₹ 1,25,000.00 | ₹ 3,57,500.00 |