The 8th Pay Commission is set to bring substantial changes for central government pensioners, including significant hikes in pension amounts. Reports indicate that the fitment factor could rise to 2.86, leading to pensions increasing from the current Rs 9,000 to anywhere between Rs 22,500 and Rs 25,200. This hike is part of a broader revision of salaries and allowances for central government employees, which is expected to result in significant financial benefits for pensioners as well.

In anticipation of the Budget 2025, the Union Cabinet has approved the formation of the 8th Pay Commission to revise the salary structures and pensions for central government employees. As the 7th Pay Commission is set to conclude in 2026, the government has decided to establish the new commission, with the chairman and members to be appointed soon. Consultations with central and state ministers, along with other stakeholders, will follow to finalize decisions on the revisions.

Under the 8th Pay Commission, employees and pensioners are expected to see an increase in both salaries and pensions. The fitment factor, which determines salary and pension calculations, is projected to rise from 2.57 to 2.86. This change could push the minimum basic salary from Rs 18,000 to Rs 51,480. The pension increase is also anticipated to be substantial, with some pensioners seeing their payouts grow by approximately 186%.

Changes in Pension Structure

Currently, central government employees and pensioners are operating under the 7th Pay Commission, which came into effect in January 2016 and is expected to end in 2026. Experts suggest that with the implementation of the 2.86 fitment factor, pensions will rise significantly. For instance, pensions currently set at Rs 9,000 could increase to anywhere between Rs 22,500 and Rs 25,200, according to a report from Financial Express.

Along with the increase in basic pension allowances, other perks and benefits are also expected to undergo major revisions. This revision is in line with the expected salary hikes, which will see a 25% to 30% increase for pensioners, similar to previous pay commissions.

The 8th Pay Commission will affect approximately 49 lakh central government employees and 65 lakh pensioners, bringing considerable financial relief to a large section of the workforce. The pension revisions will align closely with the salary hikes, ensuring that pensioners benefit proportionally to the revised salary structures.

What to Expect Moving Forward

As the government moves forward with the 8th Pay Commission, pensioners and employees alike are hopeful for the benefits that are expected to come with these changes. With the rise in the fitment factor and anticipated salary revisions, central government pensioners can expect a significant boost to their retirement benefits in the near future.