In a significant development, the 8th Central Pay Commission (CPC) is slated to take effect on January 1, 2026, bringing cheer to over one crore central government employees and pensioners and a substantial increase in monthly pensions.
Sources suggest that the 8th CPC may introduce a fitment factory of 2.86, which would lead to a significant hike in monthly pensions. This would be a substantial increase from the 2.57 fitment factory of the 7th CPC in 2016. The current minimum basic pension for Central government retirees is Rs. 9000 per month, with a maximum function fixed at Rs. 1,25,000 per month.
However, if the 8th CPC adopts the proposed fitment factor, the minimum factor could increase up to Rs. 25,740 per month; similarly, the maximum pension could increase up to potentially exceed Rs. 3,57,500 per month.
In addition to revised pensions, central government employees and pensioners are also expected to benefit from their allowances, including Dearness Relief (DR).
The DR, currently set at 53% of the basic pension, serves as vital shield against rising costs. This ensures that the pensioners can maintain their purchasing power despite rising costs.
