8th CPC: Pensioners demand 67% pension, Rs 69K pay

By Sohail Khan 11 September 2026, 2:08 pm

Synopsis

8th Pay Commission latest news: Pensioners proposed a 67% pension of last pay drawn and a minimum pay of Rs 69,000. They also recommended one-rank-one-pension for all central government employees. The association suggested reducing the pension commutation period to eleven years. Defence pensioners' qualifying service should also be reduced on par with civil pensioners. Tax exemption on pension and family pension was also strongly advocated.

Image for 8th Pay Commission news: Pensioners demand 67% of last pay drawn, Rs 69,000 minimum pay, 3.83 fitment factor — 8th pay commission salary

Pension at 67% of last pay drawn, a minimum pay of Rs 69,000 at a 3.833 fitment factor for central government employees, one-rank-one pension (OROP) for all and tax exemption on pension and family pension for all were some of the key recommendations of the All India Federation of Pensioners Association (AIFPA) in its meeting with 8th Pay Commission officials in Chennai on Tuesday.

In its meeting, the pensioners association also suggested reducing the pension commutation period from 15 years to 11, reducing qualifying service years to get pension for defence pensioners, and a revision of pension for Bharat Sanchar Nigam Limited (BSNL) were some of the other key demands. ET Wealth Online takes you through the 10 key demands raised by the All India Federation of Pensioners Association in its meeting with 8th CPC officials in Chennai.

1.Revision of full pension

The AIFPA says that to support a decent and dignified retired life with a minimum of two-member family units, the full pension should be fixed at 67% of the last pay drawn. Accordingly, the family pension should be 50% of the last pay drawn instead of the existing 30%, the pensioner body recommended.

2.Additional pension

Under the existing system, the pension amount increases by 20% when a pensioner completes 80 years of age and after that, it goes up by 10% every five years. By their 100th birthday, a pensioner gets a 100% pension increase.

In its recommendation to the 8th CPC, the AIFPA has referred to the report of the Parliamentary Standing Committee on Pensioners’ Grievances (110th report, December 2021), where it suggested an additional quantum of 5% pension on attaining the age of 65 years and thereafter, a 5% increase after every five years.

As per the pensioner body’s recommendations, instead of 100 years of age, a pensioner will get a 100% rise in pension at their 90th birthday.

With the increase in additional pension for every 5 years, the AIFPA has proposed the following increased rates of pension.

Age/Years	Proposed Pension / as a % of LPD
60	67
65	70
70	75
75	80
80	85
85	90
90	100

3.Minimum pay of Rs 69,000 and 3.83 fitment factor

In its recommendation for the minimum salary under the 8th Pay Commission, the pensioner body has highlighted increasing expenses of households, medical treatments, education, family functions and recreational activities.

Based on these estimates, the AIFPA has recommended a minimum basic pay of Rs 69,000, a fitment factor of 3.83, five family units for pay calculation and a 6% annual rate of increment.

4.Restoration of commutation of pension after 11 years

The AIFPA has recommended reducing the pension commutation period from 15 years to 11 years.

Central government pensioners get the option of commuted pension, where they can take up to 40% of their basic pension as a lump sum amount at the time of retirement. The commuted portion is then deducted from their monthly pension and is restored only after 15 years.

The pensioner body, in its recommendation to the 8th CPC, says that with the commutation factor 8.194, the entire commuted value of pension is recovered within 10 years.

5.On rank, one pension (OROP) for all

The AIFPA has recommended implementing the policy of one rank, one pension (OROP) under the 8th Pay Commission.

The pensioner body says that ex-servicemen have been getting the OROP since 2017, and the Supreme Court has also allowed the OROP for judicial pensioners.

“The anomaly of junior pensioners getting more pension than seniors (of the same grade with same service) shall be removed,” the AIFPA says in its presentation to the 8th CPC.

6.Reduction of qualifying service for Defence pensioners

The AIFPA says that while central government civil pensioners get pension on the completion of 10 years of service, the criteria for defence pensioners is 15 years.

“The minimum qualifying service to draw pension in Defence service should be reduced on par with central civil pensioners,” the pension body suggests to the 8th CPC.

7.Exemption of pension and family pension from income tax and special exemption to Defence pensioners from income tax

In its presentation to the 8th Pay Commission, the AIFPA says pensions form the primary source of survival for senior citizens who no longer have an active salary. With an increase in surviving age, medical care expenses, and requiring physical supportive care, senior citizens should not be taxed, says the pensioner body.

The AIFPA has also recommended that disability pension/compassionate allowance granted to ex-servicemen should also be exempted from income tax.

8.Enhancement of Fixed Medical Allowance (FMA)

The AIFPA says that a Parliamentary Panel in 2022 had recommended increasing the FMA to Rs 3,000 per month, which is yet to be implemented. The pensioner body has suggested that the 8th CPC increase the FMA to Rs 5,000.

The AIFPA also says that the FMA should be linked with the consumer price index and whenever dearness relief (DR) increases, the FMA should automatically be increased.

Central government pensioners get DR as part of their payout for rising inflation.

9.Revision for BSNL pensioners

The AIFPA says that the pension of BSNL pensioners has not been revised since 2017.

“In spite of favourable recommendations from the courts of law, BSNL pensioners are eligible for government pension under the CCS Pension Rules,” says the AIFPA.

The pensioner body has appealed to the 8th CPC that the pension of BSNL pensioners should be revised from 2017 based on the recommendations of the 7th Pay Commission (7th CPC).

10. Implementation of arbitration award

The AIFPA says that the government delays the implementation of the ‘arbitration awards’, resulting in loss to the employees.

The pensioner body has suggested to the 8th CPC to strengthen the set up by suitable recommendations and maintain industrial peace.