8th Pay Commission Pension Calculations: What can be revised pension for pensioners with basic pension of Rs 22,450, Rs 59,250, Rs 65,550, Rs 72,100 at 1.92, 2.57 fitment factors
8th Pay Commission Pension Calculations: Once the 8th Pay Commission recommendations come into effect, not only are central government employees set for a salary hike, but also pensioners are likely to see a significant jump in their basic pension. But how much revised pension may they expect if the pay commission sets the fitment factor at 1.92 or 2.57?
8th Pay Commission Pension Calculations: When a pay commission is formed, every central government employee and pensioner waits for its recommendations to be implemented. After all, it makes their salaries and pensions see a jump. For many pensioners, a pension is their only source of income post retirement. A hike in pension is a great monetary relief for them. In the previous pay commission, their minimum pension was raised to Rs 9,000. How much pension jump may happen this time? What may be revised pensions for employees with basic pensions of Rs 14,600, Rs 22,450, Rs 33,850, Rs 59,250, Rs 65,550, Rs 72,100 and Rs 91,100 at 1.92 and 2.57 fitment factors?
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(Disclaimer: These are projections. Actual calculations may vary.)
Pension calculation for pensioners
They get the total pension as per their basic pension and the current dearness relief (DR) percentage. DR revision ensures the pension amount increases as per inflation. It is based on the All India Consumer Price Index and is revised twice a year.
E.g., if a person's basic pension is 24,000 and the DR rate is 55 per cent, their total pension will be Rs 37,200.
How pensions are revised in pay commission
The fitment factor is the multiplier taken for the revision of basic salary and pensions by a pay commission. It is decided in the recommendation report of the commission to the central government, which may accept the same or ask the commission to revise it. Once the fitment factor comes into effect, the pension is revised.
Minimum and maximum pensions in 7th Pay Commission
The fitment factor for the 7th Pay Commission was 2.57. So, the minimum pension was revised to Rs 9,000, while the maximum was Rs 1,25,000. The pensions of different level employees were also revised based on it.
How is DR calculated for pensioners?
When the pension revision recommendations of a new pay commission are implemented, DR becomes zero. The finance ministry increases it every six months, or 20 times in a 10-year pay commission.
E.g., when the 7th Pay Commission was implemented in January 2016, DR became 0. After several increments, it has currently reached 55 per cent. Another rise is due in July, where it may be raised by 2 per cent and 3 per cent.
Expected pension rise for 8th Pay Commission
It will depend on the fitment factor, which will be decided once the commission is formed and recommendations are approved. There are various opinions and suggestions by many experts and government departments. Some say it will be the same as in the 6th Pay Commission at 1.92. Some are expecting it to be 2.57, the same as for the 7th Pay Commission.
Some say that it can reach up to 2.86.
Current status of 8th Pay Commission
The commission is supposed to be implemented from January 1, 2026, as the tenure for the 7th Pay Commission will end on December 31, 2025. But the new commission is yet to be formed. The entire process of formation, preparing a report and implementing it may take up to 1.5 years. However, employees will get arrears from January 1, 2026.
Calculations for story
We will calculate revised pensions for pensioners with basic pensions of Rs 14,600, Rs 22,450, Rs 33,850, Rs 59,250, Rs 65,550, Rs 72,100, and Rs 91,100 at 1.92 and 2.57 fitment factors.
Revised basic pension for pensioners with Rs 14,600 basic pension
At 1.92 fitment factor-Rs 28,032
At 2.57 fitment factor-Rs 37,522
Revised basic pension for pensioners with Rs 22,450 basic pension
At 1.92 fitment factor-Rs 43,104
At 2.57 fitment factor-Rs 57,696.50
Revised basic pension for pensioners with Rs 33,850 basic pension
At 1.92 fitment factor-Rs 64,992
At 2.57 fitment factor-Rs 86,994.50
Revised basic pension for pensioners with Rs 59,250 basic pension
At 1.92 fitment factor-Rs 1,13,760
At 2.57 fitment factor-Rs 1,52,772.50
Revised basic pension for pensioners with Rs 65,550 basic pension
At 1.92 fitment factor-Rs 1,25,856
At 2.57 fitment factor-Rs 1,68,463.50
Revised basic pension for pensioners with Rs 72,100 basic pension
At 1.92 fitment factor-Rs 1,38,432
At 2.57 fitment factor-Rs 1,85,297
Revised basic pension for pensioners with Rs 91,100 basic pension
At 1.92 fitment factor-Rs 1,74,912
At 2.57 fitment factor-Rs 2,34,127