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A very important and big news has come out for crores of central employees and pensioners of the country regarding the 8th Pay Commission. Usually, whenever there is talk of a new pay commission, people’s focus remains on the increase in fitment factor and dearness allowance (DA). But this time the story is a little different. This time in the deliberation processes of the Eighth Pay Commission, special attention is being given to the financial and social security of retired employees, which will make their old age more secure.

Discussions regarding a new and flexible pension structure have intensified between the government and employee organizations. Under this new proposal, as the age of the employees increases, their pension amount will also increase. Apart from this, employees can also get complete freedom to choose the pension scheme of their choice. Let us know in detail what major changes can come in the pension rules under the Eighth Pay Commission.

8th Pay Commission Pension Rules Change: What is the new proposal?

The National Council of Joint Consultative Machinery (NC-JCM) has made a very special demand in its memorandum submitted to the Eighth Pay Commission. The organization says that after retirement, employees have every right to live a respectable life. For this, the amount of full pension should be increased from the existing 50% to 67% of the last pay drawn or the average salary of the last 10 months, whichever is in the employee’s favor.

Along with this, another excellent proposal has been made citing the old recommendation of a Parliamentary Standing Committee. According to this, the pension of employees should be increased by additional 5% every 5 years after retirement.

Age-based Pension Structure: Know at what age your pension will increase.

If this recommendation is approved, the country will see a new age-based pension structure. Under this, elderly pensioners will get more financial help with increasing age. According to this new proposal, after crossing the age of 65 years, the employee will start getting 70% of his last pay (LPD) as pension. At the same time, at the age of 70 years it will increase to 75%.

Similarly, 80% of the last salary will be given on the age of 75 years and 85% pension will be given on the age of 80 years. When the employee reaches the age of 85 years, he will get 90% of his last salary. The most surprising and good thing is that on completion of 90 years of age, the pensioner will start getting pension equal to 100% of his last salary i.e. his full salary.

OPS vs NPS vs UPS: Employees can get freedom to choose the scheme of their choice

According to reports, in the meetings held in recent weeks between employee representatives and the Commission, a consensus seems to have been reached on providing more flexibility in the pension system. Under this new proposal, central employees can get great freedom to choose any one of the three major pension systems of the country as per their need and future planning.

The first is the Old Pension Scheme (OPS), which is a defined-benefit scheme. In this, a fixed and guaranteed pension is provided on the basis of last salary and Dearness Allowance (DA), the entire expense of which is borne by the government and the employees do not have to pay anything from their own pocket. The second is the National Pension System (NPS), which is a contribution-based model. In this, both the employees and the government jointly contribute to the fund and its returns completely depend on the fluctuations of the stock market, which is also often criticized. The third is the Unified Pension Scheme (UPS), which offers a middle path. In this, contribution has to be made like NPS, but the employees get a guarantee of a fixed and assured pension benefit from the government.

More than 1.1 crore people of the country will be directly affected

These new recommendations of the Eighth Pay Commission are going to prove to be very historic in terms of the financial and social structure of the country. If these rules are implemented, more than 1.1 crore beneficiaries of the country will directly benefit from it. This scope includes currently working central employees, current pensioners and their families, who will get a huge financial support in old age.

Know what has been the history of Pay Commission in the country

For your information, let us tell you that till now a total of seven pay commissions have been constituted in India. The country’s first pay commission was established decades ago in January 1946. Since then it has become a tradition that usually every 10 years a new pay commission is constituted, which reviews the salary and pension of the employees. Taking this trend forward, the current Eighth Pay Commission was constituted on 3 November 2025. This is why government employees and pensioners across the country are keeping an eye on its recommendations and upcoming decisions.