8th Pay Commission: The 8th meeting of the Pay Commission is set to take place in Chennai on September 7th and 8th, and it holds significant importance. During this session, the Commission will engage with various employee and pensioner organizations to address their grievances and requests. Previous meetings have been conducted in cities such as Delhi, Lucknow, and Kolkata.

What Will be the Focus Areas?

Employee groups are advocating for the reinstatement of the previous pension scheme, as currently, pensions are provided through either the NPS-based system or the Unified Pension Scheme. Other concerns that may be raised include matters related to job postings and transfers.

Demands for Pension Adjustment:

Several organizations are pressing the 8th Pension Commission to enhance the OPS, which currently stands at 50 percent of the final salary, urging for an increase to 67 percent. For instance, as per the 7th Pay Commission, the minimum pension is Rs 9,000 for employees with a basic salary of Rs 18,000.

Current Pension Calculation:

– Under the existing pension system, pension is calculated at 50 percent of the basic salary or the average of the basic pay over the last 10 months, whichever is higher.

Projected Pension Figures:

– With a fitment factor of 2.15, the minimum pension for various levels would be: Level 4 – Rs 27,413, Level 5 – Rs 31,390, Level 6 – Rs 38,055, and Level 7 – Rs 48,268.
– If the fitment factor were 2.28, the pensions would be: Level 4 – Rs 29,070, Level 5 – Rs 33,288, Level 6 – Rs 40,356, and Level 7 – Rs 51,186.
– With a fitment factor of 2.57, projected minimum pensions would be: Level 4 -Rs 32,768, Level 5 – Rs 37,522, Level 6 – Rs 45,489, and Level 7 -Rs 57,697.

The All India New Pension Scheme Employees Federation (AINPSEF) has demanded a 7% annual increment. Let’s analyze the math to see how much a 7% increment would change the salary structure if a 2.15% fitment factor is applied in the 8th Pay Commission. Let’s assume that the current basic salary of a Level 8 employee is Rs 47,600. If a 2.15% fitment factor is applied in the 8th Pay Commission, the estimated revised basic pay could be approximately ₹102,340. If the increment rate is 7%, the total basic salary could reach approximately Rs 1.70 crore in 10 years. In this scenario, an additional Rs 28.89 lakh could be earned compared to a 3% increase.