There’s been a lot of chatter among central employees and retirees about the upcoming pay commission. The 8th Pay Commission is shaping up to be some seriously good news. If the rumors are true, the fitment factor might be set at 1.90. This could mean a big boost for pensioners, with their pensions potentially jumping by 90%. Some pensions could even exceed Rs 2 lakh! Let’s break down how that could happen.
So, what does a fitment factor of 1.90 really mean for pensioners?
Looking back at the 7th Pay Commission, the fitment factor was 2.57, which resulted in a significant salary and pension hike for government employees. If the 8th Pay Commission lowers it to 1.90, pensioners could see even greater benefits than before.
If you’re under the 7th Pay Commission and your pension is Rs 9,000, with the 8th Pay Commission and a fitment factor of Rs 1.90, your pension will jump to Rs 17,000. On the flip side, if your maximum pension is Rs 1,25,000, with the same 8th Pay Commission and fitment factor, you’ll see your pension soar to Rs 2,37,500.
How is pension determined?
The amount of government pension is based on the employee’s basic salary and the relevant fitment factor. Although there hasn’t been any official word from the government about the 8th Pay Commission yet, employee organizations are actively advocating for an increase in the fitment factor to at least 2.80. This change would provide greater benefits for both pensioners and current employees. If the government agrees to the 8th Pay Commission’s recommendations in 2025 and maintains the fitment factor at 1.90, it could result in significant advantages for many government pensioners.