8th Pay Commission: How Much Will the Pension of Central Employees Increase Under UPS?

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Indiaemploymentnews
Tue Jan 21 16:13:36 IST 2025
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The Modi government has finally approved the 8th Pay Commission, which will benefit over 1.2 crore central government employees and pensioners. The implementation of the Unified Pension Scheme (UPS) and the 8th Pay Commission is expected to bring significant changes in the salary and pension structure of central government employees. Here’s everything you need to know about the expected increases and benefits.

Key Highlights of the 8th Pay Commission:
  • The 8th Pay Commission will be implemented from January 1, 2026.
  • More than 1.2 crore central government employees and pensioners will benefit from the implementation.
  • Unified Pension Scheme (UPS) will come into effect on April 1, 2025.
What is UPS (Unified Pension Scheme)?
  • UPS is a combination of the Old Pension Scheme (OPS)
and the New Pension Scheme (NPS), providing a guaranteed pension to government employees.
  • Under UPS, employees who have served the central government for at least 25 years will receive 50% of their average basic salary for life after retirement.
  • The scheme ensures family pensions, guaranteed pension amounts, and minimum pensions for all employees.
    • UPS Benefits and Features
    :
    • Minimum Pension: Employees with at least 10 years of service will receive a minimum pension of Rs 10,000 per month.
    • Family Pension: In case of death, the employee’s family will receive 60% of the pension.
    Impact of 8th Pay Commission on Pension under UPS:
    • The fitment factor for the 8th Pay Commission could range from 1.92 to 2.86.
    • If the fitment factor of 2.86 is applied
    , the minimum pension can rise significantly from Rs 9,000 to Rs 17,280 – Rs 25,740, a potential increase of 186%. Changes in Minimum Salary Under UPS After the 8th Pay Commission:
    • The minimum basic salary under UPS, currently Rs 18,000, is expected to rise to Rs 51,480.
    • Similarly, the minimum pension will rise from Rs 9,000 to Rs 25,740 with the implementation of the 8th Pay Commission and a fitment factor of 2.86.
    Final Notes:
    • The 8th Pay Commission and UPS will bring substantial increases to both the salaries and pensions of central government employees.
    • The pension increases depend on the fitment factor, which may vary but is expected to significantly boost the financial security of pensioners and employees alike.

    This government move is aimed at benefiting central employees and pensioners, providing a more secure and financially stable

    post-retirement life. However, as the final implementation date approaches, further details and adjustments are expected.

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