8th Pay Commission: How Much Will Pension Increase? Full Calculation by Pay Grade

There is good news for central government pensioners. The 7th Pay Commission period ends on 31 December 2025, and the 8th Pay Commission is expected to be implemented after that.

If the government approves a fitment factor of 1.92 or 2.28, there will be a noticeable hike in pensions.

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This will especially benefit pensioners who retired under older pay grades. However, a final decision will come from the central government, and pensioners will have to wait for official approval.

How Is New Pension Calculated?

In the 7th Pay Commission, the fitment factor was 2.57. This meant the basic pension from the 6th Pay Commission was multiplied by 2.57 to get the new amount.

Similarly, the 8th Pay Commission will use a fitment factor to revise pensions.

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Different employee bodies have suggested a factor ranging from 1.92 to 3.86, but most likely, the increase will be based on 1.92 or 2.28.

Current Pension as per 7th Pay Commission

  • Minimum Pension: ₹9,000

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  • Maximum Pension: ₹1,25,000

  • Minimum Basic Salary: ₹18,000

Maximum Basic Salary: ₹2,50,000

Estimated Pension Increase According to Pay Grades

The estimates below are based on current pension amounts and projected fitment factors.

Pay Grade 2000 (Level 3)

Current Pension: ₹13,000

At 1.92 factor: ₹24,960

At 2.28 factor: ₹27,040

Current Pension: ₹16,000

At 1.92 factor: ₹30,720

At 2.28 factor: ₹33,280

Pay Grade 2800

Level 4 – Current Pension: ₹15,700

At 1.92 factor: ₹30,140

At 2.28 factor: ₹32,656

Level 5 – Current Pension: ₹20,800

At 1.92 factor: ₹39,936

At 2.28 factor: ₹43,264

Pay Grade 4200 (Level 6)

Current Pension: ₹28,450

At 1.92 factor: ₹54,624

At 2.28 factor: ₹59,176

Current Pension: ₹31,100

At 1.92 factor: ₹59,712

At 2.28 factor: ₹64,688

Pay Grade 4800 (Level 8)

Current Pension: ₹32,050

At 1.92 factor: ₹61,536

At 2.28 factor: ₹66,664

Current Pension: ₹37,150

At 1.92 factor: ₹71,328

At 2.28 factor: ₹77,272

When Will the 8th Pay Commission Be Implemented?

The recommendations for the 8th Pay Commission are expected after December 2025. However, its implementation could take until 2026 or later.

Before that, a detailed report will be created after discussions with central government employee associations and related departments. The final approval will come from the Union Cabinet.

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