October 6, 10:15Aaj Tak

Potential Pension Amount with the 8th Departmental Commission Review: Calculations Based on Different Coefficients

The formation of the eighth departmental commission review (8th Pay Commission) is actively being discussed in the country, raising expectations among millions of employees. This new commission review, which could potentially take effect on January 1, 2026, will depend on the Fitment Factor used in calculating pension increases.

According to the current rules of the seventh departmental commission review, the minimum basic pension is 9,000 rupees. However, depending on the fitment factor applied under the 8th departmental commission review, a significant increase is expected. Particular interest is shown by employees working under the Old Pension Scheme (OPS), who are monitoring possible changes to the basic pension after the introduction of the new commission review.

As a general rule, an employee's pension is calculated as 50% of their last basic salary or average basic salary over the last 10 months. Various trade unions demand that when determining the rules and conditions of the 8th departmental commission review, employees who retired before January 1, 2026, be included in the calculation on equal terms.

Based on data from various media and expert forecasts, if the 8th departmental commission review applies fitment factors of 2.1, 2.28, or 2.57, the following calculations for the minimum basic pension for levels 5 through 9 are possible:

Fitment Factor 2.1

Even with the minimum factor of 2.1, a substantial pension increase is expected. For level 5, the minimum basic pension may amount to about 30,660 rupees per month. For level 6, an increase to 37,170 rupees is projected. The minimum basic pension for level 7 is estimated at approximately 47,145 rupees, for level 8 at 49,980 rupees, and for level 9 at around 55,755 rupees.

Fitment Factor 2.28

With the application of a moderate factor of 2.28, the pension for level 5 will rise to 33,288 rupees per month. The pension for level 6 may reach 40,356 rupees. Level 7 employees may receive a minimum basic pension of 51,186 rupees. For level 8, the minimum basic pension will increase to 54,264 rupees, and for level 9, up to 60,534 rupees per month.

Fitment Factor 2.57

If the government maintains the factor of 2.57, similar to that in the 7th departmental commission review, pensioners will receive a significant benefit. The minimum basic pension for level 5 will be 37,522 rupees per month. For level 6, the minimum pension will rise to 45,489 rupees. The basic pension for level 7 may reach 57,697 rupees. The minimum basic pension for level 8 may reach 61,166 rupees, and for level 9, it may increase to 68,234 rupees per month.

Several organizations, including the All India Defence Employees Federation (AIDEF), insist on increasing the pension share from the current 50% of the last basic salary to at least 67%, and the family pension to 50%. Furthermore, 'Bharat Pensioners Samaj' demands that the minimum pension under the 8th departmental commission review be set at no less than 45,000 rupees monthly. After the new commission review comes into force, the current Dearness Relief (DR) factor will be zeroed out (0%), and a new inflation/assistance allowance will be established based on the adjusted basic pension.

It is important to note that all the calculations provided are based solely on hypothetical factors and approximate data; the actual pension situation will only become clear after the final recommendations of the 8th departmental commission review are approved and officially published by the central government.

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www.aajtak.inOctober 2, 09:12

Experts discuss the timeline for the release of the 8th Departmental Commission's report

Central employees and pensioners are awaiting the next important meeting of the 8th Departmental Commission. The commission plans to hold meetings on October 7 and 8 in Bangalore, with another meeting scheduled for October 22 and 23 in Mumbai. Although the commission's work is ongoing, the main concern among workers is the timeline for the report's publication and the implementation of new tariff rates.

The 8th Departmental Council was given eighteen months to prepare the report. The government officially notified the Terms of Reference (ToR) and scope of the commission's activities on November 3, 2025, marking the start of the 18-month period. Currently, about eleven months have passed, and if the report is not ready within the stipulated time, the commission may request an extension from the government.

To date, the 8th Departmental Council has conducted consultations with employee and pensioner unions across different parts of the country. Events took place in locations such as Dehradun, Pune, Hyderabad, Srinagar, Ladakh, Lucknow, Bhubaneswar, Kolkata, Jaipur, Chennai, Puducherry, and Chandigarh. Meetings were held in Delhi on May 10 and August 7. The next scheduled sessions will be on October 7-8 in Bangalore and October 22-23 in Mumbai, where requirements and proposals from employees, pensioners, and other stakeholders are being discussed.

Various organizations have expressed differing views regarding the report's release date. Manjit Singh Patel, Chairman of the All India New Pension Scheme Employees Association, believes that if all necessary meetings conclude by November, the report could be submitted to the government in February or March.

On the other hand, S. Srikumar, General Secretary of the All India Defence Employees Federation, asserts that the commission has until May 2027, and the report might appear within the established 18 months. He also notes that after receiving the report, the government will require three to four months to implement the recommendations.

Conversely, SB Yadav, President of the Confederation of Central Government Employees and Workers, predicts that the report might be released in May 2027. He suggests that the review process by the ministerial group and its subsequent implementation could take another four to six months.

Kevy Kamesh, General Secretary of the Indian Railway Technical Supervisors Association, suggests that the results may emerge by the end of 2027, with new wage rates potentially taking effect from January 1, 2026. Avinash Rajput from Bharat Pensioners Samaj believes the entire process could extend until 2029 or 2030.

The Departmental Council itself does not set new salaries. First, the commission gathers proposals and negotiates with various parties to formulate its recommendations. Then, the report is sent to the central government level. The government may form a ministerial group to analyze the recommendations, making changes or adjustments. Subsequently, the government approves and publishes the recommendations. If the new rates are effective from an earlier date, employees and pensioners may receive amounts due for the past period, known as arrears.

Analysis of past departmental councils shows that report preparation times varied. The 7th Departmental Council was established in February 2014 and submitted its report in November 2015. The 6th Departmental Council was founded in October 2006 and provided its report in March 2008. Thus, the process of departmental council work often spans several years, making it impossible to definitively determine a deadline for the 8th Departmental Council's report.

Currently, the most critical point is that the release date for the 8th Departmental Council's report remains undecided. Trade unions are presenting various scenarios, ranging from February-March 2027 to May 2027. There are also opinions that implementation after the report's publication could take anywhere from three to a longer period. Employees are also discussing the possibility of introducing new rates from January 1, 2026. If the government applies them retroactively, this could pave the way for receiving arrears for the interim period. However, a final decision will only become clear after the government acts on the recommendations and official publication.