The Central Government last month announced the 8th Pay Commission, with over 1 Central Government employees and pensioners are now waiting for the salary and pension hike. News24 with its recent interviews tried to find out that what will be the actual pension hike, the Central Government pensioners can expect.

Staff side leader of the National Council-Joint Consultative Machinery (NC-JCM), M. Raghavaiah, has told NDTV Profit that they are pushing for a fitment factor of “at-least 2” in the new Pay Commission.

Moreover, Former finance secretary of India, Subhash Chandra Garg, told News24 in an exclusive interview that the government may approve the fitment factor of 1.92-2.08 under the next Pay Commission.

However, Shiv Gopal Mishra, secretary staff side NC–JCM told News24, “I think it (fitment factor) should be 2.86. Staff side of NC–JCM and other experts are working on it.”

8th Pay Commission: What Will Be The Actual Pension Hike?

Garg said to News24, “Currently, the DA/DR is 53% (as of July 1, 2024). To calculate the DA/DR till January 1, 2026, two more installments need to be added: one due on January 1, 2025, and another on July 1, 2025. Assuming a 7% increase, the DA/DR for January 1, 2026, would be approximately 60%.” Furthermore, he added, “Usually, pay commissions have recommended increases ranging from 15% to 30%. The previous pay commission recommended an increase of around 14-15%.”

Garg anticipated that the government may approve the hike of 20-30% on the current pension, which includes the basic pay and dearness relief (DR).

Calculation

Let’s assume the DR at 60% at the time when government implements 8th Pay Commission.

The basic minimum pension under 7th Pay Commission for central government pensioners is Rs 9,000 per month.

Rs 9,000 + DR (at the time when new Pay Commission is implemented), this makes the minimum pay (basic + DR) of central government pensioners at Rs 14,400, when the new Pay Commission is implemented.

Expected new minimum basic pension under the 8th Pay Commission

At 1.92 fitment: Rs 17,280 (a 20% actual increase on current salary, which includes basic + DR).

At 2 fitment: Rs 18,000 (a 25% actual increase on current salary, which includes basic + DR).

Fitment 2.08: Rs 18,720 (a 30% actual increase on current salary, which includes basic + DR).

Moreover, at 2.86 fitment: Rs 25,740 (nearly 80% actual increase on current salary, which includes basic + DR).

However, if we exclude DR, the increase at 1.92 fitment factor will be 92%, it will be 100% at the fitment factor of 2, 108% at the fitment factor of 2.08 and 186% at the fitment factor of 2.86. Notably, the increase in real world could range between 20-80%. Most likely it will be around 20-30%.