A hike in pension is expected under the Old Pension Scheme for Central Government employees. Discussions are ongoing about calculating basic pension using different fitment factors, along with union demands for higher pension rates.
8th Pay Commission: The government formed the 8th Pay Commission on November 3, 2025. A temporary three-member panel, headed by Justice Ranjana Prakash Desai, has already completed over 12 months. According to the Terms of Reference (ToR), the panel has around 6 more months to submit the final report to the Central Government.
29
Old Pension Scheme
Several unions, associations, working Central Government employees, and pensioners are closely watching the 8th Pay Commission's decisions. The update is especially crucial for those covered under the Old Pension Scheme (OPS). Influential pensioner organizations have already submitted proposals demanding meaningful changes to the retirement benefits of Central Government employees.
39
Improving Pensioners' Livelihood
The main goal of these demands is to improve the standard of living for pensioners. The organizations also want higher pension amounts, improved family pensions, and better parity between current and future retirees.
What will be the revised pension if the 8th Pay Commission uses a fitment factor of 2.1, 2.57, or 2.75? The estimated calculations cover basic pensions from Rs 25,000 to Rs 75,000 to give a clear picture.
59
Basis for Current Basic Pension
Under the existing pension structure, eligible Central Government employees under the Old Pension Scheme (OPS) usually get 50% of their last drawn salary or 50% of their average salary for the last 10 months, whichever is higher, as their basic pension, subject to applicable rules.
69
Basic Pension Examples
For instance, if an employee retires with a last basic salary of Rs 1,00,000, they are eligible for a basic pension of Rs 50,000. Similarly, an employee retiring with a basic salary of Rs 40,000 can get Rs 20,000 as basic pension. This amount represents only the basic pension and does not include Dearness Relief (DR), medical allowance, or other benefits.
79
Pension Amounts Under Different Fitment Factors
As mentioned earlier, a Central Government employee typically receives 50% of their last drawn salary or 50% of the average salary for the last 10 months (whichever is higher) as their basic pension under the current OPS structure.
89
Various Pension Slabs
In this context, the calculation covers various basic pension levels from Rs 25,000 to Rs 75,000, with intervals of Rs 5,000. Note that these are not specific pension slabs from the 7th Pay Commission. These figures merely represent pension amounts roughly equivalent to 50% of an employee's last drawn basic salary (ranging from Rs 50,000 to Rs 1.5 lakh).
99
Demands of Pensioner Organizations
The National Council-Joint Consultative Machinery (NC-JCM) and the All India Defence Employees Federation (AIDEF) have demanded an increase in full pension from 50% to 67% of the last drawn salary, and an increase in family pension from 30% to 50%. Meanwhile, the Bharat Pensioners Samaj has demanded a minimum pension of Rs 45,000 and a pension rate of 67% of the last drawn salary.
