The central government has approved the new Eighth Pay Commission. The Centre has given a deadline of 18 months, or one and a half years, for its report. Justice Ranjan Prakash Desai has been appointed as the chairman of this new pay commission.
This time, there is hope — how much will the pension of central government employees and retired employees increase?
As of October 30, 2025: 68.72 Lakh Pensioners in India
Before the start of November, The government released a pensioner list October 30, 2025, there are a total of 68.72 lakh pensioners in the country. This includes employees from the Civil, Railway, Defence, Post, and Telecom departments.
50 Lakh Central Government Employees at Present
Currently, there are around 50 lakh central government employees. The fitment factor is usually calculated in multiple form, which helps create the new pay structure from the old pay scale.
The fitment factor under the 7th Pay Commission was 2.57. If an employee’s basic pay was ₹10,000, it became ₹25,000.
In the 8th Pay Commission, the fitment factor may increase to 3.00 or even 3.68. For example, if the old basic pay was ₹40,000 and the old pension ₹20,000, the pension could rise by 50% to ₹40,000.
If the fitment factor is 3.00, the new basic pay could be ₹1,20,000 and the pension ₹60,000. If it reaches 3.68, the pension could go up to ₹73,600. This means the overall fitment factor may increase further.
Dearness Allowance (DA) is given as a fixed percentage on the pension, and its value increases automatically. For example:
- Old pension ₹20,000 + 20% DA = ₹4,000
- New pension ₹30,000 + 20% DA = ₹6,000
Family Pension Tax Rules
Family pension is counted as “Income from Other Sources” for tax purposes. The amount is tax-free up to ₹15,000. Any amount above that is taxed as per income slab.