8th Pay Commission: Upcoming Consultations in Chennai to Address Salary and Pension Revisions

The 8th Pay Commission’s next consultation meetings are set to start in Chennai from September 7. In the two-day meetings, central government employee and pensioner bodies and other stakeholders will discuss issues related to the revision of pay, pension and allowances.

They will also discuss work-related and logistical issues that many central government employees face during their postings and transfers. For pensioners, nearly all key employee bodies have been asking for the restoration of the Old Pension Scheme (OPS) for employees and retirees who come under the National Pension System (NPS) and the Unified Pension System (UPS).

Most of the bodies want the pension under the OPS to be increased from 50% to 67% of the last pay drawn. But if the Centre revises pensions based on the fitment factor, as it did in the 7th Pay Commission, how much monthly pension increase can Level 4-7 employees expect at 2.15, 2.28 and 2.57 fitment factors?

8th CPC: Key pension-related demands of employee and pensioner associations

The National Council of the Joint Consultative Machinery (NC-JCM), the main central government body, the All India Employees’ Federation (AIDEF) and the Bharat Pensioners Samaj (BPS), among others, have recommended that the last-drawn pension of a retired employee should be 67% of their last pay drawn, while the family pension should be 50% of the last pay drawn.

The All India New Pension Scheme Employees’ Federation (AINPSEF) and the BPS, among others, have recommended implementing the One rank, one pension (OROP) scheme for all civilian pensioners, including those covered under the NPS and the UPS. They suggest that at any level, the minimum pension of a pensioner retired in any year should not be less than 50% of the minimum basic pay at any level.

For example, for a Level 1 employee (as per the 7th Pay Commission classification) retired in any year, the minimum pension should not be less than Rs 9,000 since the minimum salary at that level is Rs 18,000.

Pension recommendations for 8th Pay Commission

Organisation Pension recommendation for 8th CPC National Council of the Joint Consultative Machinery (NC-JCM) Pension should be 67% of last-drawn pay, family pension should be 50% All India Defence Employees' Federation (AIDEF) Pension should be 67% of last-drawn pay, family pension should be 50% Federation of National Postal Organisations (FNPO) Complete delinking from departmental budget; centralization under Consolidated Fund of India. All India New Pension Scheme Employees Federation (AINPSEF) One rank one pension to civilian employees Indian Railways' Supervisors' Association (IRTSA) Retirement and death gratuity under all pension schemes, OROP Bharat Pensioners Samaj (BPS) Minimum pension at Rs 45,000, 67% of the last pay drawn, family pension at 50% of the last pay drawn.

Minimum pension for Level 4-7 employees (as per 7th Pay Commission)

Under the 7th Central Pay Commission, pension under the OPS is ordinarily calculated at 50% of the last basic pay or the average basic pay of the last 10 months, whichever is higher. Considering that the pension will be 50% of the last basic pay drawn, here are the pension amounts for Level 4-7 employees.

Level 4-7 pay and pension as per 7th CPC

Pay Level 7th CPC basic pay range Corresponding basic pension range Level 4 ₹25,500–₹81,100 ₹12,750–₹40,550 Level 5 ₹29,200–₹92,300 ₹14,600–₹46,150 Level 6 ₹35,400–₹1,12,400 ₹17,700–₹56,200 Level 7 ₹44,900–₹1,42,400 ₹22,450–₹71,200

Revised estimated pension for Level 4-7 employees at 2.15, 2.28 and 2.57 fitment factors

The basic pension of the 6th Pay Commission was multiplied by the fitment factor of 2.57 to form the 7th Pay Commission pension for Level 1-18 pensioners. For the 8th Pay Commission pension estimates, we are assuming that the government may follow the same process, multiplying the 7th CPC pensions by the fitment factor to determine 8th CPC pensions.

As far as the fitment factor is concerned, it will be known only when the government notifies the 8th Pay Commission report, but for our calculations, we are assuming fitment factors of 2.15, 2.28 and 2.57.

Pension estimates for Level 4-7 employees at 2.15 fitment factor

Employee level 7th CPC minimum pension 8th CPC revised estimated pension Level 4 ₹ 12,750 ₹ 27,413 Level 5 ₹ 14,600 ₹ 31,390 Level 6 ₹ 17,700 ₹ 38,055 Level 7 ₹ 22,450 ₹ 48,268

Pension estimates for Level 4-7 employees at 2.28 fitment factor

Employee level 7th CPC minimum pension 8th CPC revised estimated pension Level 4 ₹ 12,750 ₹ 29,070 Level 5 ₹ 14,600 ₹ 33,288 Level 6 ₹ 17,700 ₹ 40,356 Level 7 ₹ 22,450 ₹ 51,186

Pension estimates for Level 4-7 employees at 2.57 fitment factor

Employee level 7th CPC minimum pension 8th CPC revised estimated pension Level 4 ₹ 12,750 ₹ 32,768 Level 5 ₹ 14,600 ₹ 37,522 Level 6 ₹ 17,700 ₹ 45,489 Level 7 ₹ 22,450 ₹ 57,697