🛠️ 1. Fitment Factor & Pay/Pension Increases
- Fitment factor likely between 2.6–2.86, up from 2.57 in the 7th CPC.
• If set at 2.86, minimum basic salary could rise from ₹18,000 to ≈₹51,480, and minimum pension from ₹9,000 to ≈₹25,740
• Other estimates suggest a range of 2.6–2.85, indicating possible salary increases of 25–30%
📊 2. Sample Pension Revisions
Example projections for Pensioners (Grade ₹2,000 – Level 3):
- ₹13,000 base → ₹24,960 at ×1.92, or ₹27,040 at ×2.28
- ₹16,000 base → ₹30,720 (×1.92), or ₹33,280 (×2.28)
⏳ 3. Commuted Pension Recovery Period
Employee unions demand restoring commuted pension over 12 years instead of the current 15 years, citing low interest rates
📉 4. Dearness Allowance (DA) Arrears & Increment Freeze
18 months of PA/DR arrears still unpaid, dating from Jan 2020 to Jun 2021; unions are pressing for clearance before the 8th CPC implementation.
🏦 5. Unified Pension Scheme (UPS) vs. NPS
- Around 2.7 million central employees must choose between market-linked NPS and the new guaranteed UPS by June 30. UPS provides fixed benefits, while NPS offers higher growth potential with more risk
📝 What’s Next?
- 8th Pay Commission expected to be implemented from 1 January 2026
- Employee groups and NC-JCM are preparing memorandums with demands on fitment, minimum wage, allowances, pension parity, and promotions
- Interim issues like DA freeze, notional increments, and pension recovery periods are drawing attention ahead of final CPC recommendations.
✅ Summary for Employees & Pensioners
- Prepare for higher pay/pension with a fitment of up to 2.86×.
- Monitor updates on DA arrears clearance and notional pay increments.
- Choose wisely between NPS and UPS before the June 30 deadline.
- Keep informed on 8th CPC rollout, proposals, and official gazette notifications through late 2025.
