8th Pay Commission

 

🇮🇳 8th Pay Commission: Latest Updates and Impact on Defence Pensioners

The Central Pay Commission (CPC) is a statutory body set up every ten years to review and recommend revisions in salaries, allowances, and pensions of central government employees—including the armed forces. For defence pensioners, each pay commission translates into better financial security, cost-of-living adjustments, and overdue arrears that can restore dignity in retirement.

The Union Cabinet approved the constitution of the 8th CPC on January 16, 2025, aiming to cover roughly 36.57 lakh central employees and 33.91 lakh pensioners, including defence personnel and their families (Source: StaffNews, https://www.staffnews.in/2025/03/approval-of-8th-central-pay-commission-for-benefit.html). Official notification of the commission’s members is expected soon, with its report likely submitted by late 2025 and implementation slated from January 1, 2026 (Source: Financial Express, https://www.financialexpress.com/money/8th-pay-commission-fitment-factor-hike-may-raise-salaries-pensions-by-3034-in-3920075/).

Analysts at Ambit Capital project a fitment factor between 1.83 and 2.46, potentially raising salaries and pensions by 30–34 percent across the board. Such a revision could cost the exchequer an estimated ₹1.8 lakh crore but would inject substantial purchasing power into more than one crore beneficiaries (Source: Financial Express, https://www.financialexpress.com/money/8th-pay-commission-fitment-factor-hike-may-raise-salaries-pensions-by-3034-in-3920075/).

For defence pensioners, the key components include:

• Basic Pension Revision: A prospective hike using the new fitment factor, with minimum pensions expected to rise significantly above the current ₹9,000 per month (Source: OneIndia, https://www.oneindia.com/india/8th-pay-commission-da-hike-and-pension-changes-key-insights-and-full-details-011-4051775.html).
• Dearness Relief (DR) Merge: Existing DR—currently at 53 percent—will be merged into the revised basic pension, resetting to zero at implementation and then readjusted bi-annually to align with inflation.
• OROP Adjustments: One Rank One Pension (OROP) benefits are expected to be fine-tuned under the new pay scales, potentially offering extra relief to veterans of the same rank retiring at different times (Source: ESM Info Club, https://esminfoclub.com/8th-pay-commission-impact-for-soldiers-govt-employees-and-pensioners).

A key demand from veterans is the reduction of the commuted pension restoration period from 15 to 12 years. If accepted, this would enable retirees to receive full pension sooner, a vital consideration amid rising medical and living costs (Source: Times Now, https://www.timesnownews.com/business-economy/personal-finance/8th-pay-commission-update-will-retirees-get-full-pension-3-years-sooner-heres-what-we-know-panel-likely-to-review-commuted-pension-period-article-152189632).

What can you do today?

• Monitor official MoD and Department of Ex-Servicemen Welfare circulars via RTI portals.
• Participate in veterans’ forums and share proposals, as the Directorate of Naval Veterans has begun soliciting inputs in a prescribed format (Source: ESM Info Club, https://esminfoclub.com/8th-pay-commission-impact-for-soldiers-govt-employees-and-pensioners).
• Engage with ex-servicemen associations to ensure defence voices shape the commission’s terms of reference.

As the 8th CPC unfolds, staying informed and proactive is crucial. Share your experiences on Sainik Darpan or write to us—your insights can help secure the best outcomes for all defence pensioners.

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References

1. Approval of 8th Central Pay Commission for benefit to Central Employees/Pensioners and Defence Personnel and Pensioners. StaffNews. https://www.staffnews.in/2025/03/approval-of-8th-central-pay-commission-for-benefit.html
2. “8th Pay Commission: Fitment factor hike may raise salaries, pensions by 30–34% in….” Financial Express. https://www.financialexpress.com/money/8th-pay-commission-fitment-factor-hike-may-raise-salaries-pensions-by-3034-in-3920075/
3. “8th Pay Commission: DA Hike And Pension Changes: Key Insights And Full Details.” OneIndia. https://www.oneindia.com/india/8th-pay-commission-da-hike-and-pension-changes-key-insights-and-full-details-011-4051775.html
4. “8th Pay Commission Impact for Soldiers Govt Employees and Pensioners.” ESM Info Club. https://esminfoclub.com/8th-pay-commission-impact-for-soldiers-govt-employees-and-pensioners
5. “8th Pay Commission Update: Will Retirees Get Full Pension 3 Years Sooner?” Times Now. https://www.timesnownews.com/business-economy/personal-finance/8th-pay-commission-update-will-retirees-get-full-pension-3-years-sooner-heres-what-we-know-panel-likely-to-review-commuted-pension-period-article-152189632