Pension Hike: The 8th Pay Commission was established on November 3, 2025, with a mandate to present its recommendations within 18 months. Central pensioners, numbering around 33.76 lakh, are eagerly anticipating how much their pensions will rise under this new commission.
Presently, the minimum basic pension set by the 7th Pay Commission is Rs 9,000 per month. However, employee groups and pensioners’ associations are pushing for a substantial increase in pensions under the 8th Pay Commission. One of the main demands put forth by NC-JCM is for a fitment factor of 3.83, as this factor will determine the actual pension increase. If the government agrees to this demand, calculating pensions will become more straightforward: New Basic Pension = Current Basic Pension × 3.83.
Key demands raised by major organizations like Bharat Pensioners Samaj (BPS) include increasing the minimum basic pension to Rs 45,000, merging Dearness Relief (DR) with basic pension once it surpasses 25%, and reviewing Dearness Relief every quarter.
Potential Pension Based on a 3.83 Fitment Factor
If the 3.83 fitment factor is implemented, the basic pension could increase significantly compared with the current pension under the 7th Pay Commission. For a current basic pension of Rs 10,000, the estimated revised pension would be around Rs 38,300. Those receiving a basic pension of Rs 15,000 could potentially get Rs 57,450, while a pension of Rs 18,000 could rise to approximately Rs 68,940.
Similarly, a current basic pension of Rs 20,000 would become around Rs 76,600, while Rs 25,000 could increase to Rs 95,750. For those with a basic pension of Rs 30,000, the estimated revised amount would be Rs 1,14,900. A basic pension of Rs 35,000 could rise to approximately Rs 1,34,050, while Rs 40,000 could become Rs 1,53,200. At the higher end, a current basic pension of Rs 50,000 could potentially increase to around Rs 1,91,500 under a 3.83 fitment factor.
In the 7th Pay Commission, a fitment factor of 2.57 was approved, raising the minimum basic salary to Rs 18,000 and minimum pension to Rs 9,000. The fitment factor for the 8th Pay Commission is yet to be disclosed as the commission is still finalizing its report.
Pensioners should be aware that during the implementation of a new pay commission, the existing dearness relief (DR) is not directly added to the new basic pension. The current DR is reset to zero and included in the new basic pension structure. The Commission is set to submit its recommendations to the government by May 3, 2027. Following this, the Union Cabinet will review the suggestions and make a final decision, providing pensioners with precise and updated pension details.