A very important and big news is coming for crores of central employees and pensioners of the country. After the official formation of the 8th Pay Commission, various employee organizations have now geared up and placed a long list of demands before the Commission. If all these proposals are approved, it will completely change the fate of millions of people in the country. These new proposals are mainly being strongly advocated for changing the method of pension calculation, revising the fitment factor, and making major changes in dearness relief (DR). Apart from this, a very interesting demand has also been raised that as a person’s age increases, his pension amount should also be continuously increased.
Who will be directly affected?
It is being reported that these crucial suggestions have been submitted just before the Pay Commission’s upcoming state visits. The seriousness of this matter can be easily gauged by the fact that the acceptance or rejection of these demands will directly impact the livelihoods of approximately 6.5 million central and defense sector pensioners and approximately 5 million current central government employees.
Major demands from employee organizations
This time, it’s clear that employee organizations are in a completely all-out mood. Several prominent organizations, including the National Council-Joint Consultative Machinery (NC-JCM), the All India Defence Employees Federation (AIDEF), and the Maharashtra Old Pension Organization, have jointly submitted these proposals to the Commission. Their primary demand is that the minimum pension be fixed at 67 percent of the last basic salary (Last Pay Drawn), or the average salary for the last 10 months of service. Additionally, the need to increase the maximum limit of gratuity and thoroughly review the dearness allowance system has also been highlighted. Another significant demand is that all pensioners should be given complete and unequivocal freedom to choose between the Old Pension Scheme (OPS), the National Pension System (NPS), and the Unified Pension Scheme (UPS).
Unique proposal to increase pension with increasing age
The most unique and surprising proposal on the pensioner front is a gradual increase in pensions based on age. Organizations argue that as seniors age, their medical and other daily needs increase significantly, so their pensions should increase proportionately. The proposal also demands that when an employee reaches the age of 90 or older, they should receive 100 percent of their final salary as pension.
You can understand this proposed pension slab placed before the Commission in these simple steps: When the employee reaches the age of 65 years, he should get 70% of the last salary, when he reaches the age of 70 years, he should get 75% of the last salary, when he reaches the age of 75 years, he should get 80% of the last salary, when he reaches the age of 80 years, he should get 85% of the last salary, when he reaches the age of 85 years, he should get 90% of the last salary, and when he reaches the age of 90 years or more, he should be given the entire 100% of the last salary as pension.
The commission will go on state tours, now the real test will begin.
The Eighth Pay Commission, headed by former Supreme Court judge Justice Ranjana Prakash Desai, is now fully engaged in preparations for its next phase. While the process of gathering suggestions from the public and various organizations was completed in June, the real test has now arrived, as the Commission members themselves will visit various states to directly interact with employees and pensioners. According to the schedule, the Commission will be in Bhubaneswar on July 6th and 7th, and will visit Kolkata on July 9th and 10th. Additionally, a visit to the Central Railway Zone in Mumbai is also planned, where they will go to ground zero and closely assess the working conditions and real-life circumstances of employees.
When will the increased money reach the pockets of the employees?
Now, the biggest and most common question remains: when will this increased pay finally reach employees’ pockets? So, let us tell you that these are merely demands and proposals, which are yet to be finalized by the government. The Commission is currently studying all these suggestions in great detail and will then prepare its final recommendations. Considering the history and working methods of previous pay commissions, it is believed that the Commission may submit its final report to the government by mid-2027.
This will be followed by a long process of government approval and administrative processing, which typically takes another two to three years. According to local experts and financial experts, even if the government approves all these proposals, it could take until 2029 or 2030 for central government employees and pensioners to see the actual benefits. Until then, employees will have to wait a little longer.