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  1. 8th Pay Commission: One Rank One Pension (OROP) proposal for civilians explained

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8th Pay Commission: One Rank One Pension (OROP) proposal for civilians explained

Upstox

4 min read | Updated on September 02, 2026, 17:30 IST

SUMMARY

Whether the 8th Pay Commission can resolve the date-of-retirement discrimination depends on the fitment factor it recommends and whether it accepts the principle of notional fixation for past retirees

8th cpc one rank one pension proposal

8th CPC is facing a demand for implementation of one rank, one pension for civilian employees. | Image: Shutterstock

Suppose two government employees, both serving in the same Level 6 post for the same number of years, retired a decade apart - one in 2016 and another in 2026. While the one who retired in 2016 under the 7th Central Pay Commission (CPC) draws a basic pension of ₹24,500, which with dearness relief of 58% amounts to approximately ₹38,710 per month. The another retiring in 2026 may come under the purview of the 8th CPC and draw a higher monthly pension. Same rank, same service, but with a significant pension gap. This is the argument at the heart of a proposal that has gained momentum before the 8th Pay Commission: One Rank One Pension for civilians.
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The concept, modelled on the armed forces OROP, holds that employees retiring from the same rank with the same length of service should receive comparable pensions regardless of when they retired.

In its memorandum to the 8th CPC, the Ministerial Staff Association (MSA), Survey of India, has been the most specific in articulating this demand. The MSA said: "Currently, a date-of-retirement based discrimination exists. Civilian employees who retired under earlier Pay Commissions receive significantly lower pensions than those retiring today from the same rank and with the same length of service. This violates the principle of Equal Pay for Equal Work in its deferred form."

MSA has proposed a specific mechanism. "The pension of past retirees should be notionally fixed in the 8th CPC Pay Matrix at the same stage as a currently retiring employee of the same rank." Its memorandum said this would remove "the arbitrary cut-off date distinction and ensures equity across generations of employees."

Bharat Pensioners Samaj (BPS), which represents nearly one million pensioners, has also demanded an "equitable pension revision and parity for pensioners retiring before and after 1 January 2026." BPS has also proposed pension at 67% of last pay drawn, family pension at 50% of last pay drawn, and a minimum pension of ₹45,000%.
The Railway Senior Citizens' Welfare Society (RSCWS) has framed the same issue through a different lens. In its memorandum, RSCWS noted, "Differences often arise between past pensioners and recent retirees because pension revisions do not always fully reflect pay revisions granted to serving employees. This creates a sense of inequity among pensioners of different retirement periods."

RSCWS specifically listed OROP among its retirement benefit demands and said: "The principle that employees retiring from the same rank and with similar length of service should receive comparable pension deserves consideration in civilian services as well. Addressing pension disparities among retirees of different periods would promote equity and reduce anomalies"

The Staff Side National Council of the Joint Consultative Machinery (NCJCM), the main body representing central government employees, proposed a fitment factor of 3.833 and demanded extension of revised pay structures to pensioners who retired before 1 January 2026. NCJCM also proposed revision of pay and pension every five years instead of the current 10-year cycle, which would reduce the gap between successive batches of retirees.

The military OROP, implemented after prolonged agitation, provides that armed forces pensioners of the same rank with the same length of service receive the same pension, with periodic revision. The civilian demand is structurally similar but differs in scale.

The Union Budget 2025-26 allocated ₹2.65 lakh crore for pensions, according to NCJCM's memorandum, which noted that total expenditure on pay and pensions amounts to approximately 12 to 15% of the union budget, including armed forces. Excluding defence, the salary component is 7.1% and pension 4%.

Whether the 8th CPC can resolve the date-of-retirement discrimination depends on the fitment factor it recommends and whether it accepts the principle of notional fixation for past retirees. If the commission accepts a fitment factor of 3.833 as proposed by NCJCM and BPS, a Level 6 employee retiring in 2026 would draw a pension of approximately ₹93,900, while one who retired in 2016 would continue at ₹38,710. If OROP is accepted, the 2016 retiree's pension would be notionally revised to match, eliminating the gap. If it is not, the gap will persist, and may widen with each Pay Commission cycle.

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