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8th CPC Pension Projections: With an announcement in January, the 8th Pay Commission is yet to be formed. Though the government issued a notification of vacancies for various 8th CPC posts last month, it has yet to come up with names. With each passing day, central government pensioners across India have high hopes of their pension revision. They expect a significant rise in the pension, especially because a 2.57 fitment factor was applied to the 7th Pay Commission.

But what is the expected pension rise they may get in the 8th Pay Commission?

What if their pension is Rs 17,700, Rs 26,550, Rs 59,250, or Rs 72,100?

What can be their estimated rise at a 2.08 and 2.28 fitment factor?

What can be the lowest and highest range of pension in the 8th Pay Commission?

See estimates to know!

Along with the salaries of central government employees, pensions for lakhs of central govt pensioners were also revised.

After the revision, the minimum basic pension jumped to Rs 9,000, while the maximum increased to Rs 1,25,000.

The change came into effect after a 2.57 fitment factor, or multiplier, was applied to it. 

Once the Centre announces pension revision for its pensioners, state governments also follow the path and increase pensions for their employees.

The basic pension remains the same throughout a pay commission, but the finance ministry revises the dearness relief (DR) twice a year for pensioners.

The DR is increased to match inflation.

The DR rise is based on the All India Consumer Price Index Industrial Workers (AICPA-IW) monthly reading. The index indicates the rising consumer price inflation in India. 

As it happened in the 7th Pay Commission, it will most likely be done on the basis of the fitment factor.

It was also the multiplier for the 6th Pay Commission.

When a fitment factor is applied, the current pension is multiplied by it to determine the pension of the new pay commission.

E.g., if a pensioner gets Rs 25,000 as a monthly basic pension and the fitment factor is 2.08, their estimated revised pension will become Rs 52,000. 

The fitment factor for the 8th CPC will be decided once the pay commission is formed, prepares its recommendation report, and gets it approved by the Cabinet.

Before approval, the central government may suggest a few changes related to the fitment factor and allowances.

As per many expert projections, the fitment factor can be in the range of 1.92-2.86. 

Just see how a fitment factor changes the basic pension of a pensioner.

Suppose a pensioner is getting Rs 30,000 as the basic pension.

Let's see the revised pension at 1.92, 2.08, 2.28 and 2.57 fitment factors.

At 1.92 fitment factor- Rs 57,600 

At 2.08 fitment factor- Rs 62,400

At 2.28 fitment factor- Rs 68,400

At 2.57 fitment factor- Rs 77,100

Here, we can see how the pension amount will increase as per different fitment factors.

Since the pay commission is yet to be formed, it may take more than a year for the report to be submitted, get approved, and be implemented.

Whenever it comes into effect, pensioners will get arrears from January 1, 2025. 

We will calculate the projected revised minimum pensions for Level 1-18 employees at 2.08 and 2.28 fitment factors.

Revised estimates also include amounts for pensioners with current basic pensions of Rs 17,700, Rs 26,550, Rs 59,250, or Rs 72,100.

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