8th Pay Commission Pension Update: Pensioners have placed a series of major proposals before the 8th Central Pay Commission, including a minimum pension of ₹45,000 per month and revision of Dearness Relief every three months instead of twice a year.

Central government pensioners have stepped up their demands before the 8th Central Pay Commission, seeking a substantial increase in minimum pension along with major changes in the way Dearness Relief (DR) is calculated and revised.

Bharat Pensioners Samaj (BPS), which represents nearly 10 lakh pensioners, has proposed that the minimum pension be increased to ₹45,000 per month. The organisation has also sought quarterly revision of DR, which would effectively mean four revisions in a year. (CGE News - 8th Pay Commission)

Minimum Pension Demand: ₹9,000 to ₹45,000

Under the 7th Pay Commission framework, the minimum basic pension is ₹9,000 per month. BPS has proposed raising this amount to ₹45,000 under the 8th Pay Commission.

If accepted, this would represent a five-fold increase in the minimum basic pension. However, it is important to note that ₹45,000 is currently a demand from the pensioners' organisation, not a pension amount approved by the government or the Pay Commission. (CGE News - 8th Pay Commission)

DR Could Be Revised Every Three Months

At present, Dearness Allowance for employees and Dearness Relief for pensioners are generally revised twice a year, with revisions linked to January and July.

BPS wants this system changed so that inflation-linked relief is reviewed every three months. If implemented, pensioners could see four DR revisions during a year instead of two.

The organisation argues that more frequent revisions would help retirees deal with changes in the cost of living more quickly. (mint)

Demand to Merge DR With Basic Pension at 25%

Another significant proposal concerns the merger of Dearness Relief with basic pension.

BPS has suggested that once DR reaches 25%, it should be merged into the basic pension rather than continuing entirely as a separate component. (mint)

Such a change could affect the base on which certain future pension-related benefits are calculated, depending on the final rules adopted by the government.

Pension Up to 67% of Last Drawn Pay

Pensioners have also sought a major revision in the pension formula. Among the proposals is a pension equivalent to 67% of the last basic pay drawn by an employee at retirement.

For family pension, the organisation has reportedly proposed a level equivalent to 50% of the last basic pay. (CGE News - 8th Pay Commission)

₹69,000 Minimum Pay and 3.83 Fitment Factor Also Sought

The demands are not limited to pensioners. The proposals also include a minimum basic salary of ₹69,000 for central government employees and a 3.83 fitment factor.

These figures remain proposals and should not be confused with the final salary or pension structure that the 8th Pay Commission may eventually recommend. (CGE News - 8th Pay Commission)

Pension Review Every Five Years

Another proposal calls for salaries and pensions to be reviewed every five years rather than waiting for longer intervals between successive Central Pay Commissions.

Pensioners have also raised the issue of parity between retirees, seeking to ensure that people retiring from comparable posts do not receive significantly different pension benefits merely because they retired at different times.

What Happens Next?

The 8th Pay Commission will examine representations from employees, pensioners and other stakeholders before preparing its recommendations. Therefore, proposals such as the ₹45,000 minimum pension, quarterly DR revision and 3.83 fitment factor should currently be treated only as demands.

There is no guarantee that the Commission will accept them in their present form. The eventual pension increase will depend on the Commission's recommendations and the central government's final approval.

In short: Pensioners are pushing for a ₹45,000 minimum pension, DR revision every three months, merger of DR with basic pension after it reaches 25%, and a pension formula of up to 67% of last basic pay. For now, none of these proposals represents a final government decision. (CGE News - 8th Pay Commission)