8th Pay Commission: How much pension will increase as per UPS? Know all the necessary things

8th Pay Commission: Central employees have long advocated for the establishment of the 8th Pay Commission, a request that has now received approval from the Central Government. The implementation of the Eighth Pay Commission is set for 2026, prompting an examination of the potential salary and pension increases for central employees. This initiative by the Narendra Modi administration is expected to benefit over 1.2 crore central government employees and pensioners, who are now eagerly anticipating enhancements to their compensation and retirement benefits.

A Unified Pension Scheme (UPS) has been developed

The government’s announcement has brought joy to countless families with members either currently employed in Central Government roles or those who have retired. A Unified Pension Scheme (UPS) has been developed, integrating key aspects of both the Old Pension Scheme (OPS) and the New Pension Scheme (NPS). This new scheme is scheduled to take effect on April 1, 2025, ensuring that central employees receive a fixed pension.

Fitment factor for the 8th Pay Commission could range from 1.92 to 2.86

Experts project that the fitment factor for the 8th Pay Commission could range from 1.92 to 2.86, potentially raising pensions from the current Rs 9,000 to between Rs 17,280 and Rs 25,740. The fitment factor serves as a crucial multiplier for determining the salaries and pensions of government employees. Should the fitment factor of 2.86 be adopted, it could result in an approximate 186% increase in both salary and pension.

How much salary can increase?

If the 2.86 fitment factor is applied, the minimum basic salary for government employees, currently at Rs 18,000, would rise to Rs 51,480. Likewise, the minimum pension would increase from Rs 9,000 to Rs 25,740 under the same fitment factor.