8th Pay Commission Revised Pension Calculations: Is your basic pension in Rs 17,700-Rs 72,100 range? What can be revised payout at 1.92, 2.28, and 2.57 fitment factors?
8th CPC Revised Pension Calculations: Along with salary revision, pension revision will also be an important task for the 8th Pay Commission. But what may be your revised pension if your current basic pension is in the range of Rs 10,850-Rs 72,100 and the commission sets the fitment factor of 1.92, 2.28, and 2.57?
8th CPC Revised Pension Calculations: The formation of the 8th Pay Commission is in the process with the names of the chairman and members yet to be announced. As time is passing, the heartbeats of central government employees and pensioners are getting fast. They are expecting a significant change this time given that the 7th Pay Commission had a fitment factor of 2.57. A fitment factor of above 2.0 is expected to give a significant boost to their pension. Since a pension is the only source of income for most pensioners, a hike in the amount can help their payout adjust to the rising inflation. But how much rise can they witness once the pay commission's recommendations for a pension rise are approved by Centre. For pensioners who are in the range of Rs 10,850-Rs 72,100, what may be the expected pension rise in the new pay commission if the fitment factor is 1.92, 2.28, or 2.57?
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(Disclaimer: This is not investment advice. Do your own due diligence or consult an expert for financial advice.)
Pension revision in 7th Pay Commission
The fitment factor for the 7th Pay Commission was set at 2.57. So, the existing pensions for the pensioners jumped by the same multiplier. Ten years down the line, they are in a similar situation, where they are expecting at least the same level of jump.
What is minimum and maximum pensions in 7th Pay Commission?
After a 2.57 fitment factor was applied, the minimum pension rose to Rs 9,000, while the maximum pension also took a significant jump and soared to Rs 1,25,000.
What else do pensioners get other than basic pension?
The basic pension is revised once in 10 years through a pay commission, but inflation is permanent for employees and pensioners. The government revises DR for pensioners twice a year. The DR rate is connected to the inflation rate through the All India Consumer Price Index (Industrial Workers).
When the basic pension is revised, the DR becomes zero and is re-raised.
Fitment factor pensioners can expect in 8th Pay Commission
The commission prepares a report that has revised pay and pension amounts and several allowances. It submits the report to the Cabinet to approve. Centre can recommend more changes to it or can approve it as it is. The fitment factor will be known only at that time. But there are talks that it may be in the range of 1.90-2.86. There are projections by different government departments, unions, and organisations that it can be 1.92, 2.08, 2.28, 2.57, or 2.86. The organisations have been demanding a fitment factor as high as 2.86.
Calculations for story
We will calculate the revised basic pensions for pensioners with basic pay of Rs 17,700 (Level 4), Rs 22,450 (Level 5), Rs 23,800 (Level 6), Rs 26,550 (Level 7), Rs 28,050 (Level 8), Rs 33,850 (Level 9), 39,400 (Level 10), Rs 59,250 (Level 11), Rs 65,550 (Level 12), Rs 72,100 (Level 13) at 1.92, 2.28, and 2.57.
Revised pension for pensioner with Rs 17,700 (Level 4) basic pay
At 1.92 fitment factor- Rs 33,984
At 2.28 fitment factor- Rs 40,356
At 2.57 fitment factor- Rs 45,489
Revised pension for pensioner with Rs 22,450 (Level 5) basic pay
At 1.92 fitment factor- Rs 43,104
At 2.28 fitment factor- Rs 51,186
At 2.57 fitment factor- Rs 57,696.50
Revised pension for pensioner with Rs 23,800 (Level 6) basic pay
At 1.92 fitment factor- Rs 45,696
At 2.28 fitment factor- Rs 54,264
At 2.57 fitment factor- Rs 61,166
Revised pension for pensioner with Rs 26,550 (Level 7) basic pay
At 1.92 fitment factor- Rs 50,976
At 2.28 fitment factor- Rs 60,534
At 2.57 fitment factor- Rs 68,233.50
Revised pension for pensioner with Rs 28,050 (Level 8) basic pay
At 1.92 fitment factor- Rs 53,856
At 2.28 fitment factor- Rs 63,954
At 2.57 fitment factor- Rs 72,088.50
Revised pension for pensioner with Rs 33,850 (Level 9) basic pay
At 1.92 fitment factor- Rs 64,992
At 2.28 fitment factor- Rs 77,178
At 2.57 fitment factor- Rs 86,994.50
Revised pension for pensioner with 39,400 (Level 10) basic pay
At 1.92 fitment factor- Rs 75,648
At 2.28 fitment factor- Rs 89,832
At 2.57 fitment factor- Rs 1,01,258
Revised pension for pensioner with Rs 59,250 (Level 11) basic pay
At 1.92 fitment factor- Rs 1,13,760
At 2.28 fitment factor- Rs 1,35,090
At 2.57 fitment factor- Rs 1,52,272.50
Revised pension for pensioner with Rs 65,550 (Level 12) basic pay
At 1.92 fitment factor- Rs 1,25,856
At 2.28 fitment factor- Rs 1,49,454
At 2.57 fitment factor- Rs 1,68,463.50
Revised pension for pensioner with Rs 72,100 (Level 13) basic pay
At 1.92 fitment factor- Rs 1,38,432
At 2.28 fitment factor- Rs 1,64,388
At 2.57 fitment factor- Rs 1,85,297