Discussions among central government employees and pensioners have intensified in connection with the eighth pension commission, particularly regarding salary and pension calculations. Pensioners have put forward several demands within the framework of the eighth pension commission, the adoption of which would lead to a significant increase in pension amounts.
The Staff-Side National Conference (NC-JCM) demanded that the fitment coefficient be set at 3.833 and that the annual increase be raised from 3% to 6%. Furthermore, it is being considered how much the pension of employees will change when this fitment coefficient is applied.
Before delving into the pension calculations within the eighth pension commission, it is important to understand the current pension accrual system. Currently, the pension calculation formula includes half of the basic salary, to which inflation compensation and other allowances are then added.
Example of basic pension calculation: if an employee's basic salary is 50,000 rupees, their basic pension will be 25,000 rupees. Inflation compensation and other allowances are added to this amount, after which the sum is transferred to the recipient's account.
If the government approves the 3.83 fitment coefficient, the basic pension of 25,000 rupees will increase to 95,750 rupees monthly, to which other allowances will then be added. Moreover, if a 6% increase is applied next year, this basic pension will exceed the 100,000 rupee mark.