8th Pay Commission pension: Check how ₹25,000 to ₹75,000 basic pensions may change at 2.1, 2.57 and 2.75 fitment factors
The 8th Pay Commission was constituted on 3 November 2025. As of today, the 3-member temporary panel headed by Justice Ranjana Prakash Desai has completed more than 12 months, with about 6 more months to go before the panel tables its final report before the central government, as per the Terms of Reference (ToR) of the 8th Pay Commission.
The decision made by the 8th Pay Commission is going to be closely tracked and monitored by eligible unions, associations, serving central government employees and pensioners. Particularly, by those who are covered under the Old Pension Scheme (OPS). This is because several prominent pensioners’ organisations have submitted proposals and views seeking constructive and meaningful changes in pensions for retired central government employees.
The core aim behind these demands is to try to improve the livelihoods of pensioners, seek higher pensions for them, and focus on ways to improve family pensions and parity between existing and future retirees.
Still, the fundamental question remains: how much could the existing pensions increase if the 8th Pay Commission panel considers fitment factors of 2.1, 2.57 or 2.75? This write-up discusses illustrative calculations for basic pensions running from ₹25,000 to ₹75,000.
In accordance with the existing pension framework, all eligible central government employees under the OPS are generally eligible to receive a basic pension calculated at 50% of their last-drawn emoluments or average emoluments of the last 10 months, whichever is more, subject to the applicable rules and regulations.
For example, an employee retiring with a last drawn basic salary of ₹1,00,000, might receive a basic pension of ₹50,000. Similarly, if an employee retires with a last drawn basic salary of ₹40,000, they might end up receiving a basic pension of ₹20,000. Now, this is only the basic pension, i.e., the core; it does not include additional benefits such as Dearness Relief (DR), medical and other forms of allowances.
In line with the same, the current calculation assumes existing basic pensions ranging from ₹25,000 to ₹75,000, in increments of ₹5,000. Do note, these are not fixed pension amounts that are prescribed for individual 7th Pay Commission levels. These figures only represent different amounts that could broadly correspond to last-drawn basic pay of ₹50,000 to tentatively about ₹1.5 lakh, assuming a 50% pension calculation.
Hence, as discussed above, under the current OPS framework, an individual central government employee will generally receive a basic pension equivalent to 50% of their last-drawn emoluments or the average of the last 10 months, whichever is higher, subject to the applicable rules and regulations.
Keeping this in mind, the following table shows how different existing pensions could change under 3 hypothetical fitment factors if they are officially approved by the 8th Pay Commission panel and adopted by the central government. It is also vital to remember that in the 6th and 7th Pay Commissions, the officially adopted fitment factors were 1.86 and 2.57, respectively.
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Now it is essential to also recall that the 7th Pay Commission had considered two distinct methods for revising pre-2016 pensions: the first was the notional pay fixation in the Pay Matrix and multiplication of existing pensions by 2.57. The central government employees were given the choice to opt for any of the two methods that yielded higher pensions.
The National Council-Joint Consultative Machinery (NC-JCM) and All India Defence Employees' Federation (AIDEF) have sought increases in full pension from 50% to 67% of last-drawn pay and family pension from 30% to 50%, respectively. Meanwhile, Bharat Pensioners Samaj has demanded a minimum pension of ₹45,000 and a pension equivalent to 67% of last-drawn pay.
However, the factors used above are hypothetical, not official recommendations. The final pension revision will depend on the commission's report and government approval. Headed by Justice Ranjana Prakash Desai, the commission is expected to submit its report by May–June 2027.
Shivam writes on personal finance, equity markets, and mutual funds. He has previously contributed to several leading publications, including Moneycontrol. He can be reached at shivam.shukla@htdigital.in
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HomeMoneyPersonal Finance8th Pay Commission pension: Check how ₹25,000 to ₹75,000 basic pensions may change at 2.1, 2.57 and 2.75 fitment factors
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