8th Pay Commission: Discussions among central employees and pensioners regarding the new pay commission have become increasingly fervent. The 8th Pay Commission is anticipated to bring significant positive changes. According to sources, the fitment factor for the new pay commission may be set at 1.90, which could lead to substantial increases in pensions.

This adjustment could result in pensioners receiving an increase of up to 90%, potentially raising their pensions to over Rs 2 lakh. To comprehend how pensions could exceed Rs 2 lakh, a detailed calculation is necessary. Under the 7th Pay Commission, the fitment factor was established at 2.57, which significantly enhanced the salaries and pensions of government employees. A reduction to 1.90 in the 8th Pay Commission would still provide pensioners with considerable advantages.

The calculation of government pensions is based on the employee’s basic salary and the relevant fitment factor. Currently, the minimum and maximum pensions for those receiving benefits under the 7th Pay Commission are determined as follows:

How is this calculation performed?

7th Pay Commission Pension×1.90 fitment factor

Minimum pension: Rs 9,000 × 1.90 = Rs 17,100

Maximum pension: Rs 1,25,000 × 1.90 = Rs 2,37,500

Greater benefits for both pensioners and employees?

Although the government has yet to make an official announcement regarding the 8th Pay Commission, there is ongoing advocacy from employee organizations for an increase in the fitment factor to at least 2.80, which would provide greater benefits for both pensioners and employees. Should the government endorse the recommendations of the 8th Pay Commission in 2025 with a fitment factor of 1.90, it would result in significant advantages for millions of government pensioners.