8th Pay Commission: Rs 45,000 minimum pension, 3.83 fitment factor among pensioners’ demands; what else is being sought?

One of the latest proposals comes from Bharat Pensioner’s Samaj (BPS), which has asked the 8th Central Pay Commission to consider a minimum pension of Rs 45,000 and a fitment factor of 3.83. It has also proposed a minimum basic pay of Rs 69,000 for employees.

The proposals are part of a much larger memorandum submitted to the 8th CPC, covering pension parity, family pension, medical benefits, restoration of commuted pension and other issues affecting retirees.

But it is important to remember that these are demands and recommendations made by a pensioners’ organisation, not decisions of the government or the 8th Pay Commission.

Rs 45,000 minimum pension and 3.83 fitment factor: What has been demanded?

Bharat Pensioner’s Samaj has proposed a minimum basic pay of Rs 69,000, a fitment factor of 3.83 and a minimum pension of Rs 45,000.

The organisation has also sought pension equivalent to 67% of the last pay drawn, while family pension should be 50% of the last pay drawn.

For pensioners, the minimum pension demand is particularly important because the current minimum pension for Central Government pensioners is Rs 9,000 per month.

BPS has argued that the pension structure needs to reflect the rising cost of living and the changing financial responsibilities of families.

The organisation has also asked that pay and pension revisions be carried out every five years, instead of pensioners having to wait for the traditional 10-year cycle.

Why is the fitment factor so important?

The fitment factor is one of the most closely watched numbers whenever a Pay Commission is discussed.

In simple terms, it is a multiplier used in the process of revising basic pay. Under the 7th Pay Commission, the government approved a fitment factor of 2.57 across pay levels. The minimum pay was increased from Rs 7,000 to Rs 18,000.

For pensioners, the 7th CPC’s pension revision also used a 2.57 multiplication factor as one of the approved formulations for revising the pension of pre-2016 pensioners.

That is why demands for a higher fitment factor have become a major part of the 8th Pay Commission debate.

A 3.83 fitment factor, however, is not the approved or announced figure for the 8th CPC. It is a demand made by employee and pensioner organisations.

In fact, the National Council-Joint Consultative Machinery (NC-JCM) staff side has also reportedly sought a 3.833 fitment factor, along with a minimum basic pay of Rs 69,000 and several other changes.

This means the 3.83 figure is gaining attention because it has been included in formal demands placed before the Commission. It should not, however, be treated as an indication of what the government will finally approve.

What would 3.83 mean?

A fitment factor is often misunderstood as a direct measure of the actual increase in take-home salary or pension.

It is not.

The factor is used to arrive at the revised basic pay or pension. Other components, including allowances and dearness relief, have to be considered separately. The eventual increase in a pensioner’s monthly income would therefore depend on the final pension formula and other decisions taken by the government.

The 7th CPC itself explained that its 2.57 factor included the effect of dearness allowance neutralisation. The actual increase in pay after taking this into account was much lower than simply treating 2.57 as a 157% increase in income.

So, if the 8th CPC eventually recommends a fitment factor, pensioners should not simply multiply their current pension by that number and assume that will be their final pension.

Pension parity is another major demand

Bharat Pensioner’s Samaj has also raised the issue of pension parity.

It has sought equitable treatment between pensioners who retire before January 1, 2026 and those who retire after that date.

The demand is based on the concern that two employees who held similar posts and had similar service records should not end up with significantly different pension outcomes merely because they retired on different dates.

The organisation has also sought a review of Dearness Relief (DR).

It has proposed that DR should be revised every three months, based on a three-month average, rather than following the existing six-month cycle.

Another demand is to examine the merger of DR with basic pension once DR crosses 25%.

Pensioners want higher pension with age — and earlier

Another significant proposal is to start additional pension at 65 years, instead of waiting until 80.

Under the existing Central Government pension framework, additional pension is linked to age and currently begins at 80 years.

BPS has argued that pensioners face higher medical and other expenses much before reaching 80.

It has proposed a phased increase in pension:

65 years: 70% of last pay drawn

70 years: 75%

75 years: 80%

80 years: 85%

85 years: 90%

90 years: 100%

The idea is simple: as a pensioner gets older, healthcare and other age-related expenses generally rise, and the pension should provide greater support.

Whether the Commission accepts this proposal will depend on its assessment of the financial and fiscal implications.

Rs 5,000 monthly medical allowance demand

Healthcare is another major part of the pensioners’ memorandum.

BPS has sought an increase in the Fixed Medical Allowance (FMA) to Rs 5,000 per month.

It has also asked for stronger CGHS facilities, including more doctors, specialists, medicines and infrastructure, along with wider cashless treatment.

For pensioners living in rural and non-CGHS areas, the organisation wants cashless or CGHS-equivalent medical protection.

This is an important demand because medical expenses can become a significant part of a pensioner’s monthly budget, particularly at an advanced age.

Commuted pension: demand to restore it after 11 years

The pensioners’ body has also raised the issue of restoration of the commuted portion of pension.

At present, the commuted portion of pension is restored after 15 years.

BPS wants this period reduced to 11 years, or restoration when the pensioner reaches 71 years, whichever is earlier, for those who retire at age 60.

Its argument is that the 15-year restoration period is based on older assumptions relating to interest rates, mortality and life expectancy.

It has also asked the government to review the commutation table and the parameters used to calculate it.

Family pension and dependent parents also find a place

The organisation has proposed a change in the way the minimum wage and pension structure takes into account family responsibilities.

Under the 7th CPC’s formula, the employee was counted as one unit, spouse as 0.8 unit and two children as 0.6 unit each.

BPS has proposed a 5.2 weighted-unit family formula.

Under its proposal:

Employee: 1 unit

Spouse: 1 unit

Two children: 0.8 unit each

Two dependent parents: 0.8 unit each

The organisation says the formula should recognise that many employees continue to financially support their children as well as dependent ageing parents.

OPS restoration is also part of the demand

The Old Pension Scheme remains one of the most politically and financially significant demands being raised by employee and pensioner organisations.

BPS has also urged the 8th Pay Commission to recommend restoration of the OPS.

Its argument is that retirement security should provide a predictable and assured income after a person completes their years of government service, rather than leaving employees exposed to market-related uncertainty.

However, the 8th CPC’s terms of reference do not mean that the Commission has already agreed to restore OPS. The demand will have to be considered as part of the larger discussion on retirement benefits and the financial implications of pension arrangements.

Group insurance, autonomous bodies and BSNL pensioners

The memorandum also covers several other issues.

BPS has sought a substantial increase in the coverage under the Central Government Employees Group Insurance Scheme, with a minimum insurance cover of ₹15 lakh for the lowest cadre and higher coverage for higher levels.

It has also asked that the benefits recommended by the 8th CPC for eligible employees and pensioners of Central autonomous and statutory bodies be extended without long delays caused by separate decisions.

For BSNL pensioners, it has sought pension parity and better healthcare arrangements, including a simpler direct-payment mechanism for those opting for CGHS.

What is the current status of the 8th Pay Commission?

The 8th Central Pay Commission is now in the consultation and information-gathering stage.

The government approved its Terms of Reference in October 2025, and the Commission was formally constituted through a notification dated November 3, 2025.

The Commission is headed by Justice Ranjana Prakash Desai, with Prof. Pulak Ghosh as the part-time member and Pankaj Jain as Member-Secretary.

The Commission has been given 18 months from the date of its constitution to submit its recommendations. The government has also said it may consider interim reports if necessary.

This is important because it means the final salary and pension numbers are still some distance away.

Commission has already started consultations

The 8th CPC has been actively seeking inputs from employees, pensioners, unions, associations, experts and other stakeholders.

The Commission invited responses through an 18-question questionnaire on the MyGov portal. The deadline for submitting those responses was eventually extended to March 31, 2026, and that window is now closed.

The Commission subsequently invited memoranda and representations from stakeholders, with the deadline eventually extended to June 15, 2026.

It has also been holding meetings and consultations with employee and pensioner organisations across different locations.

The latest official schedule shows interactions in Delhi on August 7 and August 10, 2026, followed by visits to Chennai on September 7-8 and Puducherry on September 9.

This indicates that the Commission is still gathering views and examining the demands placed before it.

When will the 8th Pay Commission recommendations come?

The government has said that the Commission will submit its recommendations within 18 months of its constitution.

Since the 8th CPC was constituted on November 3, 2025, the 18-month period would take the Commission’s formal timeline into 2027.

The government has also indicated that, following the usual 10-year cycle, the effect of the 8th CPC recommendations would normally be expected from January 1, 2026. But this does not mean that the revised salary or pension will necessarily start being paid from that date.

The actual implementation will depend on when the Commission submits its report, when the government examines and accepts its recommendations and when the relevant orders are issued.

If implementation takes place later, the question of arrears will also become important. However, the exact treatment of arrears will depend on the government’s final decision.

So, what should pensioners expect now?

For now, there is no officially approved Rs 45,000 minimum pension and no government-approved 3.83 fitment factor.

These are demands placed before the 8th Pay Commission.

What is clear is that pensioners are asking for a much broader overhaul rather than simply a higher pension. Their demands cover the minimum pension, pension parity, age-linked additional pension, medical support, commutation, family pension, insurance and the restoration of OPS.

The 8th CPC will have to weigh these demands against several other factors. Its Terms of Reference specifically require it to consider the country’s economic condition, fiscal prudence, resources needed for development and welfare, the unfunded cost of non-contributory pension schemes, the likely impact on state finances and the pay and benefits available in the public and private sectors.

That is why the final number may look very different from any one demand being made today.

For pensioners, however, the message from the latest submissions is clear: the demand is not just for a bigger pension cheque. It is for a pension system that keeps pace with inflation, healthcare costs and the financial realities of ageing.

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