The formation of the 8th Pay Commission has triggered fresh expectations among both serving central government employees and pensioners. While employee unions have sought revisions in salaries, dearness allowance and pension benefits, pensioners’ organisations have also submitted proposals aimed at overhauling the pension structure. One of the key demands is the introduction of an age-linked pension system, under which retired employees would receive a higher percentage of their last drawn salary as they grow older. If accepted, the proposed changes could benefit nearly 50 lakh central government employees and around 56 lakh pensioners, including retired defence and railway personnel.
Age-Based Pension Demand
Pensioners’ organisations have urged the 8th Pay Commission to introduce a graded pension structure linked to age. Under the proposal, the pension amount would rise progressively with advancing age.
Proposed Pension Structure:
- 65 years: 70% of last drawn salary as pension
- 70 years: 75% of last drawn salary
- 75 years: 80% of last drawn salary
- 80 years: 85% of last drawn salary
- 85 years: 90% of last drawn salary
- 90 years and above: 100% of last drawn salary
Supporters of the proposal argue that older pensioners face higher healthcare and living expenses and should therefore receive enhanced financial support.
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Other Key Demands
Apart from the age-linked pension proposal, employee and pensioner groups have submitted several other recommendations to the Pay Commission.
Major Demands Include:
- Raising the minimum pension to 67% of the last drawn pay or making it equal to the average salary received during the final 10 months of service.
- Revising the fitment factor used for pension calculations.
- Reviewing the Dearness Relief (DR) structure and integrating it more effectively with pension benefits.
Expanding the scope of family pension benefits.
The 8th Pay Commission is expected to examine these proposals before making its recommendations to the government. While there is no certainty that all demands will be accepted, the suggestions have generated considerable interest among employees and pensioners alike.
If the Commission recommends significant changes and the government approves them, the revised pension and salary framework could impact millions of serving and retired central government employees across the country.
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Input By : Pratiksha Ranawat
