8th Pay Commission: Lottery for central employees! Now not 50%, but 100% pension will be given directly?

A very big and shocking news is coming for the central employees and pensioners regarding the 8th Pay Commission. This time there is not only talk of increase in fitment factor or dearness allowance (DA), but preparations are underway to make a major change in the pension rules to change the fate of retired employees. This time, the government is seriously considering starting a new and powerful pension system to keep the employees completely safe after retirement.

Now instead of 50, pension will be given directly at 67 percent!

The National Council of Joint Consultative Machinery (NCJCM) in its memorandum submitted to the 8th Pay Commission has strongly advocated for increasing the pension of employees. The council says that after retirement, the current 50 percent pension rule should be changed so that the family of at least two people can live a respectable life. According to the new demand, now the pension received after retirement should be fixed at ’67 percent of the last basic salary’ or ‘average of the last 10 months’ salary’.

Pension will increase every 5 years, 100% salary will be given at the age of 90

This time, a very special recommendation of a parliamentary standing committee has also been mentioned in the proposal. According to this recommendation, after the retirement of employees, their pension should be increased by an additional 5 percent every five years. If this formula gets the green signal, then the pension math with increasing age will change like this:

• On attaining the age of 65 years: 70 percent of the last salary
• On attaining the age of 70 years: 75 percent of last pay (LPD)
• On attaining the age of 75 years: 80 percent of last pay (LPD)
• On attaining the age of 80 years: 85 percent of last pay (LPD)
• On attaining the age of 85 years: 90 percent of last pay (LPD)
• On attaining the age of 90 years: Full 100% of last pay (LPD)

OPS, NPS or UPS: Employees will have the freedom to choose their own option.

Amidst this ongoing debate regarding pension, another wonderful proposal has come forward, which has doubled the happiness of the employees. There are speculations that the government may give complete freedom to the employees to choose their favorite pension scheme as per their need and convenience. Employees will be able to decide for themselves whether they want to go to the Old Pension Scheme (OPS), National Pension System (NPS) or Unified Pension Scheme (UPS).

Let us tell you that OPS guarantees a fixed pension, the entire expense of which is borne by the government and the employees do not have to pay anything from their own pocket. Whereas NPS is a contribution based model, where both employees and the government together deposit money in the fund and the final pension depends on the market returns. To eliminate this market risk, UPS has been introduced, which takes contribution like NPS and also guarantees a fixed pension.

Why are the eyes of 1.1 crore people of the country fixed on this?

The 8th Pay Commission is being considered the most important for the country because its implementation is going to have a direct impact on the lives of more than 1.1 crore central employees, pensioners and their families of the country. Pay commissions have a long history in India, where the first pay commission was constituted in January 1946. Since then, there has been a tradition of forming a new pay commission every 10 years. In this series, the 8th Pay Commission was constituted on 3 November 2025, and now everyone is waiting for the major changes to happen under it.