8th Pay Commission: What Central Government pensioners can expect?

The Union Cabinet recently approved the formation of the 8th Pay Commission, which will revise the salaries and pensions of central government employees. With the 7th Pay Commission concluding in 2026, this move aims to ensure a timely review of employee compensation and benefits.

One of the significant changes expected from the 8th Pay Commission is an increase in the fitment factor, which determines salary and pension calculations. Reports suggest that the fitment factor could rise from 2.57 to 2.86, leading to a substantial boost in salaries and pensions.

Currently, central government pensioners receive pensions based on the 7th Pay Commission, which was implemented in January 2016. The proposed hike in the fitment factor would result in an increase in pensions, which are currently set at Rs 9,000. According to estimates, the pensions could rise to anywhere between Rs 22,500 and Rs 25,200, an increase of up to 186% in line with the salary revisions.

The 8th Pay Commission will also bring adjustments to other allowances, and the basic minimum salary could see a significant rise from Rs 18,000 to Rs 51,480. This increase is expected to positively impact over 65 lakh pensioners and 49 lakh central government employees.

Pension revisions under the 8th Pay Commission are anticipated to follow the same trend as past commissions, with pension increases likely ranging from 25% to 30%. This hike will mirror the changes made in previous pay commissions, which significantly boosted both salaries and pension allowances.

The final details of the revisions, including the appointment of the chairman and two commission members, are yet to be finalized, with consultations between central and state ministers expected to take place in the coming months. The 8th Pay Commission is set to be a game-changer for the financial well-being of central government employees and pensioners, with substantial improvements on the horizon.