8th Pay Commission: Can Level 7 pension rise from ₹22,450 to ₹57,697? Check the calculation

The 8th Pay Commission was constituted by the central government on November 3, 2025. This is a temporary body that is headed by Justice Ranjana Prakash Desai. As of today, the commission has completed more than 10 months of its stipulated 18-month tenure, in which it is required to submit the final report on salary, allowances and pension revision to the central government.

The upcoming meetings in Chennai, starting from tomorrow, followed by meetings in Puducherry, Chandigarh, and Bengaluru starting from September 9, September 16 and October 7 are bound to bring pension-related issues back into focus, with several prominent government employee and pensioner organisations aspiring to seek meaningful changes in retirement benefits.

Among the most prominent demands by reputable unions and pension bodies is a proposal to increase pension under the Old Pension Scheme (OPS) from 50% to 67% of the last-drawn payment. There are organisations that have also sought a family pension equivalent to 50% of the last salary.

Yet another critical demand is the extension of One Rank, One Pension (OROP) kind of benefits to civilian pensioners. Still, the final recommendation of the 8th Pay Commission, including the eventual fitment factor that the panel decides, is going to play a major role in consolidating these developments.

As of today, September 6, there are no official updates on these aspects, with the final 8th Pay Commission report set to be tabled by about May-June 2027, tentatively.

How much pension do Level 4–7 employees receive currently?

It is essential to note that, under the 7th Pay Commission, pension is generally calculated at 50% of the last basic pay or the average basic pay of the last 10 months served, whichever is higher. Based on the minimum basic pay at every level, the corresponding minimum pension is discussed as follows:

Note: The minimum basic pay discussed above under the 7th Pay Commission is taken from official sources.

What could a pension look like under different fitment factors if accepted?

Now, for illustrative purposes, if the existing basic pension is simply multiplied by the assumed fitment factors of 2.15, 2.28, and 2.57 in our case, then the estimated minimum pension can increase meaningfully. The calculations are as follows:

Note: The calculations are illustrative in nature; final and accurate calculations will be possible only after the official fitment factor from the 8th Pay Commission is announced.

Therefore, it is clear that, with an assumed fitment factor of 2.57 for the 8th Pay Commission, which was also the officially declared fitment factor for the 7th Pay Commission, the minimum pension for a Level 7 employee could rise from ₹22,450 to around ₹57,697, i.e., approximately ₹58,000 per month.

This time, unions such as the National Council – Joint Consultative Machinery (NC-JCM), All India Defence Employees’ Federation (AIDEF), and Bharatiya Pratiraksha Mazdoor Sangh (BPMS) are pushing for an even higher fitment factor. Some are aiming for a range of 3.8 to 4x multiple.

Still, what is vital to keep in mind for now is that these are just calculations based on estimations of assumed fitment factors. The actual pension revision will ultimately depend on the final recommendations of the 8th Pay Commission and the centre’s final decisions thereafter.

Till then, the pensioners and employees will have to wait for the official framework to know how much their retirement benefits may actually increase and take such calculations as assumptions only.