8th Pay Commission Pension Calculations: What may be revised amounts for pensioners with basic pensions of Rs 9,950, Rs 26,550, Rs 39,400 at 1.92, 2.28, 2.57 fitment factors?

While the minimum salary in the 7th Pay Commission jumped to Rs 18,000, the minimum pension also increased to Rs 9,000. 

The maximum pension in the 7th Pay Commission was revised to Rs 1,25,000 after the maximum salary was increased to Rs 2,50,000.

A pensioner generally gets the basic pension and dearness relief (DR). The DR is the same as what the dearness allowance (DA) is for employees.

The Labour Bureau of the Ministry of Finance announces the DA rate twice a year. Along with that, the DR rate also changes. The current DR rate stands at 55 per cent with a change last month.

The fitment factor was the main criterion to hike salaries and pensions in the 7th Pay Commission. It is most likely to be the same for the 8th Pay Commission. The fitment factor for the 7th Pay Commission was 2.57.

It will be known after the Cabinet approves the pay commission's recommendations. The Cabinet may approve the same fitment factor as suggested by the Pay Commission, or it may revise it slightly as it did in the 6th Pay Commission. The fitment factor for the 6th Pay Commission was 1.92.

The DA rate as on January 1, 2025, and the expected rise based on past pay commission recommendations will be taken into account to decide the fitment factor for the 8th Pay Commission.  E.g., if the DA rate is 61 per cent and the expected basic salary rise is 24 per cent, the estimated fitment factor will be 2.

The government is yet to announce the formation of the 8th Pay Commission and the appointment of its members. It may be formed in the first half of the year. Once it is formed, it will have discussions, prepare recommendations, and pass them on to the Cabinet. After approval, these recommendations will come into force.

We will calculate estimated revised monthly pensions for pensioners with Rs 9,950 (Level 2), Rs 12,750 (Level 4), Rs 26,550 (Level 9), Rs 39,400 (Level 12), and Rs 72,100 (Level 14). We will calculate these pensions at fitment factors of 1.92, 2.28, and 2.57.

At 1.92 fitment factor- Rs 19,104 At 2.28 fitment factor- Rs 20,696 At 2.57 fitment factor- Rs 25,571.50

At 1.92 fitment factor- Rs 24,480 At 2.28 fitment factor- Rs 26,520 At 2.57 fitment factor- Rs 32,767.50

At 1.92 fitment factor- Rs 50,976 At 2.28 fitment factor- Rs 55,224 At 2.57 fitment factor- Rs 68,223.50

At 1.92 fitment factor- Rs 1,38,432 At 2.28 fitment factor- Rs 1,49,968 At 2.57 fitment factor- Rs 1,85,297