8th Pay Commission: Central government employees and pensioners are eagerly waiting for the 8th Pay Commission. Everyone wants to know how much their monthly pension will increase once the government implements the new rules
Central government employees and retired staff are eagerly waiting for the 8th Pay Commission. Everyone wants to know the exact pension hike after the new rules kick in. We have a probable calculation for pensioners who currently draw a basic monthly pension between Rs 25,000 and Rs 75,000.
27
8th Pay Commission Update
The Economic Times recently published a report showing probable pension calculations. They used 2.0, 2.25, and 2.57 fitment factors for this math. You must remember that the central government or the 8th Pay Commission has not finalized any of these numbers yet. These are just estimated scenarios.
37
How will the 8th Pay Commission increase your pension?
The government uses a multiplier called the fitment factor to calculate your new basic pension from the old one. A 2.0 fitment factor will simply double your current basic pension. Similarly, a 2.25 factor will multiply your current amount by 2.25, and a 2.57 factor will multiply it by 2.57.
What happens if your current pension is Rs 25,000?
A retired central government employee drawing a basic pension of Rs 25,000 will see these probable changes:
At 2.0 fitment factor: Rs 50,000
At 2.25 fitment factor: Rs 56,250
At 2.57 fitment factor: Rs 64,250
The final fitment factor will clearly create a massive difference in the new basic pension amount.
57
What happens if your current pension is Rs 50,000?
Pensioners who currently get a basic pension of Rs 50,000 can expect these probable figures:
At 2.0 fitment factor: Rs 1,00,000
At 2.25 fitment factor: Rs 1,12,500
At 2.57 fitment factor: Rs 1,28,500
67
What happens if your current pension is Rs 75,000?
The numbers look even bigger for retired employees who currently draw a basic pension of Rs 75,000.
At 2.0 fitment factor: Rs 1,50,000
At 2.25 fitment factor: Rs 1,68,750
At 2.57 fitment factor: Rs 1,92,750
77
What are the employee unions demanding?
Various employee and pensioner unions have submitted their demands to the 8th Pay Commission. Organizations like the National Council-Joint Consultative Machinery (NC-JCM) want the government to fix the pension at 67 percent of the last drawn basic pay. They also want the family pension to increase to 50 percent. The Old Pension Scheme currently offers 50 percent of the last drawn basic pay or the average of the last 10 months (whichever is higher) as pension. The normal family pension rate is 30 percent of the last drawn basic pay. These are just demands right now. We will know the actual numbers only after the 8th Pay Commission submits its recommendations and the central government approves them. Pensioners should treat these calculations as future possibilities and wait for the official notification.
