BUSINESS
8th Pay Commission: Great news for pensioners! These 6 major changes will be made in the 8th Pay Commission
If you are a government employee, this is very important news for you. The Eighth Central Pay Commission will be crucial for approximately 6.5 million central government pensioners and defense personnel. The commission, headed by Justice Ranjana Prakash Desai, is listening to suggestions and demands from employees, pensioners, and various organizations. Several important pension-related demands have emerged.
Demand to fix basic pension at 67 percent: Employee organizations have demanded that the pension should be fixed at 67 percent of the last salary received or the average salary of the last 10 months.
Higher pension based on age: There is a demand for higher pension at different stages after age 65. There is a proposal to provide additional benefits of 70 percent at age 65, 80 percent at age 75, 85 percent at age 80, 90 percent at age 85, and up to 100 percent after age 90. Reduction in commutation period: There is a demand to reduce the 15-year period required to recover a portion of the pension after commuting to 10 to 12 years.
Pension Revision and Fitment Factor: It has been demanded that the pension and family pension of employees who retired before January 1, 2026, be revised clearly and the fitment factor be changed.
Reform of Dearness Allowance: In view of rising inflation, there is a demand for a review of the DR system and its more effective integration with pension benefits.
Gratuity and Family Pension: Along with increasing the maximum limit of gratuity, there is a demand to increase the scope of pension given to family members.
Option to choose OPS, UPS, or NPS: There is also a demand that employees be given the option to choose between the Old Pension Scheme (OPS), Unified Pension Scheme (UPS), or NPS, depending on their needs. The commission has been given 18 months to submit its final report, and according to information received, the report is expected to be submitted by May 2027. However, the recommendations will only be implemented after approval by the central government and the Union Cabinet.
PC: NDTV
