8th Pay Commission: What minimum pension could look like under three fitment factor options
Estimates put minimum basic pension at Rs 30,660 to Rs 68,234 across Levels 5 to 9, depending on whether the fitment factor is 2.1, 2.28 or 2.57.
Central government employees and retired pensioners are waiting for the 8th Pay Commission. Retired employees say they expect a good increase in pensions along with the salary hike.
Various employee associations have placed their demands before the government. The associations say the aim is to give retired employees greater financial support amid rising inflation.
The NC-JCM pensioners' association has sought pension at 67 per cent of the last pay and family pension at 50 per cent. The All India Defence Employees Federation has made the same demand: pension at 67 per cent of the last pay and family pension at 50 per cent. The Bharat Pensioners Samaj has demanded a minimum pension of Rs 45,000. It also wants pension at 67 per cent of the last pay and family pension at 50 per cent.
The fitment factor is an important multiplier used in fixing pension and pay increases. The current basic pay or pension is multiplied by this factor to arrive at the new pay or pension.
Three options are under discussion for the 8th Pay Commission. The first is a fitment factor of 2.1, which would bring a limited rise in minimum pension. According to the estimates, if this factor is applied, the minimum basic pension could be Rs 30,660 for Level 5, Rs 37,170 for Level 6, Rs 47,145 for Level 7, Rs 49,980 for Level 8 and Rs 55,755 for Level 9.
The second option is a fitment factor of 2.28. If this is fixed, minimum basic pension could rise further. The estimates are Rs 33,288 for Level 5, Rs 40,356 for Level 6, Rs 51,186 for Level 7, Rs 54,264 for Level 8 and Rs 60,534 for Level 9.
The third option is a fitment factor of 2.57, which is said to offer the greatest likely increase. If it is adopted, the calculations show minimum basic pension of Rs 37,522 for Level 5, Rs 45,489 for Level 6, Rs 57,697 for Level 7, Rs 61,166 for Level 8 and Rs 68,234 for Level 9.
The higher the fitment factor, the higher the estimated pension. However, the final decision will depend on the commission's recommendations and the government's approval.
Pensioners should keep a few things in mind. The amounts under discussion are only estimates and have not been approved. The final pension will depend on the employee's level, current basic pension and the rules that apply. The increase will take effect only after the government issues an official order.
It is not yet clear what final decision the government will take. Pensioners should therefore not believe rumours and should rely only on official notifications and government orders.
