BIS4 min ago
8th Pay Commission Pension Calculations: At 1.92, 2.08 fitment factors, what can be revised pensions for central govt employees with basic pensions of Rs 9,000, Rs 12,750, Rs 17,700, and Rs 23,800?
- Written by ZeeBiz WebTeam
Published: Zee Business| Updated: Zee Business
8th Pay Commission Pension Calculations: The 8th Pay Commission is yet to be formed, but once its recommendations are implemented, the basic pay and pension for the central government employees and pensioners are likely to increase significantly. It will depend on the fitment factor that is decided for those employees. The fitment factor will be recommended by the pay commission. The Cabinet may accept it as it is or may change it slightly before approving. Since the 7th Pay Commission is ending on December 31, 2025, the 8th Pay Commission revised rates are most likely to apply from January 1, 2026. Even if recommendations are not implemented by then, central government employees and pensioners will get arrears from that date. In our write-up, see projections of revised basic pensions for central government pensioners with current basic pensions of Rs 9,000 (Level 1), Rs 9,950 (Level 2), Rs 12,750 (Level 4), Rs 17,700 (Level 6), Rs 23,800 (Level 8), and Rs 28,050 (Level 10) at fitment factors of 1.92 and 2.08.
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(Disclaimer: This is not investment advice. Do your own due diligence or consult an expert for financial planning.)
1/14
How is fitment factor calculated?
1/14It will depend on the dearness allowance percentage as of January 1, 2026, and the expected salary rise. The current DA rate is 55 per cent. Two DA hikes are scheduled before the 8th Pay Commission is established. Let's assume a 3 per cent hike each. According to that, DA on January 1, 2026, will be 61 per cent. As far as salary hikes are concerned, if we take the last 2 pay commission salary hikes into account, let's see what can be estimated fitment factors for the 8th Pay Commission.
2/14
At 54% recommended salary hike (as happened in 6th Pay Commission)
2/14The estimated fitment factor for the 8th Pay Commission will be 2.48.
3/14
At 14.27% recommended salary hike (as happened in 7th Pay Commission)
3/14According to that reading, the estimated fitment factor for the 8th Pay Commission will be 1.84.
4/14
Fitment factors for 6th and 7th Pay Commissions
4/14For the 6th Pay Commission, the fitment factor was 1.92. For the 7th Pay Commission, it was 2.57 per cent.
5/14
Minimum and maximum basic salaries in 7th Pay Commission
5/14According to that, the minimum basic salary for central government employees was raised to Rs 18,000 and the maximum to Rs 2,50,000.
6/14
Minimum and maximum basic pensions in 7th Pay Commission
6/14The minimum basic pension rose to Rs 9,000, and the maximum to Rs 1,25,000.
7/14
What is total pension amount?
7/14Pensioners also get dearness relief (DR) other than the basic pension. DR changes from time to time. It is the same as DA is for current employees. The current DR rate is 55 per cent.
8/14
Calculations for story
8/14We will calculate estimated revised basic pensions for central government pensioners with current basic pensions of Rs 9,000 (Level 1), Rs 9,950 (Level 2), Rs 12,750 (Level 4), Rs 17,700 (Level 6), and Rs 23,800 (Level 8) and Rs 28,050 (Level 10) at fitment factor of 1.92 and 2.08.
9/14
Projected revised basic pension for employee with current basic pension of Rs 9,000 (Level 1)
9/14At fitment factor of 1.92- Rs 17,280 At fitment factor of 2.08- Rs 18,720
10/14
Projected revised basic pension for employee with current basic pension of Rs 9,950 (Level 2)
10/14At fitment factor of 1.92- Rs 19,104 At fitment factor of 2.08- Rs 20,696
11/14
Projected revised basic pension for employee with current basic pension of Rs 12,750 (Level 4)
11/14At fitment factor of 1.92- Rs 24,480 At fitment factor of 2.08- Rs 26,520
12/14
Projected revised basic pension for employee with current basic pension of Rs 17,700 (Level 6)
12/14At fitment factor of 1.92- Rs 33,984 At fitment factor of 2.08- Rs 36,816
13/14
Projected revised basic pension for employee with current basic pension of Rs 23,800 (Level 8)
13/14At fitment factor of 1.92- Rs 45,696 At fitment factor of 2.08- Rs 49,504
14/14
Projected revised basic pension for employee with current basic pension of Rs 28,050 (Level 10)
14/14At fitment factor of 1.92- Rs 53,856 At fitment factor of 2.08- Rs 58,344
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