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  1. 8th Pay Commission pension formula: Why senior citizens want uniform fitment factor and revision

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8th Pay Commission pension formula: Why senior citizens want uniform fitment factor and revision

Upstox

4 min read | Updated on November 24, 2025, 13:32 IST

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SUMMARY

8th Pay Commission pension news: The senior citizens' body suggested that the TOR of the 8th CPC should be "expressly expanded or clarified through an amendment or follow-up notification to include recommendations for revision of pension and family pension for all future categories of Central Government retirees, including those covered under pre-7th CPC scales.

8th pay commission pension news

Senior citizens have suggested that the methodology for pension revision should be based on a uniform fitment factor. | Image source: Shutterstock

The pension provisions in the Terms of Reference (TOR) of the 8th Central Pay Commission (CPC) have not been well-received by employees, including pensioners. In the last few weeks, several bodies representing employees and pensioners written to the government seeking changes in the TOR. The Railways Senior Citizens Welfare Society (RSCWS) also wrote a letter to the Finance Minister with the following three demands:
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  • Explicit inclusion of pensioners and family pensioners under the ambit of 8th CPC benefits.

  • Application of the same fitment factor and revision formula as applicable to serving employees.

  • Early issuance of clarificatory instructions to avoid ambiguity and delay in pension revision

The senior citizens' body suggested that the TOR of the 8th CPC should be "expressly expanded or clarified through an amendment or follow-up notification to include recommendations for revision of pension and family pension for all future categories of Central Government retirees, including those covered under pre-7th CPC scales."

"We, therefore, request your kind intervention to direct the concerned departments—particularly the Department of Expenditure and Department of Pension & Pensioners’ Welfare—to ensure that pensioners are explicitly included within the scope and benefits of the 8th CPC in the upcoming implementation orders."

Why do senior citizens want a uniform fitment factor?

Senior citizens have suggested that the methodology for pension revision should be based on a uniform fitment factor. Explaining the need for this, they said, "It is suggested that the methodology for pension revision may follow a uniform fitment factor as recommended for serving employees, ensuring parity between past, present & future pensioners in accordance with the principles laid down by the Hon’ble Supreme Court in D.S. Nakara & Others vs. Union of India (1983)."

They said that the Gazette Notification of 8th CPC has laid the foundation for revising the pay structure of serving Central Government employees. However, these very serving employees will retire one day and become pensioners to carry along with them the benefits of the 8th pay commission.

"It is therefore humbly submitted that, in line with the long-standing practice and equitable principles followed since the 5th CPC, similar revision and fitment benefits should be extended to all existing pensioners and family pensioners to ensure uniformity and social security for the retired community," the retirees said.

Pay commissions compared

The letter dated November 11, 2025, also compared the key provisions of 6th and 7th CPCs with the expected changes from 8th CPC based on details in the TOR:

Aspect6th CPC (2006)7th CPC (2014)8th CPC (Expected 2025)
Effective From1 Jan 20061 Jan 2016Likely 1 Jan 2026
Pay SystemPay Band + Grade PayPay Matrix (no grade pay)Revised Pay Matrix (simpler)
Fitment Factor1.86×2.57×Around 3.0× (expected)
AllowancesRationalized, merged someFurther reduced & rationalizedExpected further simplification
PensionImproved pension & family benefitsIntroduced parity for pre-2016 retireesMay revise NPS/OPS and pension formula
Performance PaySuggested incentive-based payEmphasized performance payLikely digital/performance-linked pay

Source: RSCWS' letter dated November 11, 2025.

In view of the above comparative table under the aspect pension in the 6th and 7th CPCs, the senior citizens' body said "there is a clear mention of improved pension and parity for pre 2016 retirees respectively, whereas in 8th CPC this aspect is restricted to NPS /OPS which is creating confusion. Therefore, this aspect should be clarified with special mentioning of the pensioners and family pensioners."

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