New Delhi: The 8th Central Pay Commission (CPC) is set to take effect from January 1, 2026. This will bring major changes to the salaries, pensions and allowances of over one crore central government employees and pensioners. The revision is expected to include a fitment factor of 2.86, which could lead to a substantial increase in monthly pensions for many.

The 7th Central Pay Commission which was implemented in 2016 set the minimum basic pension for central government retirees at Rs 9,000 per month with a maximum pension of Rs 1,25,000 per month (50 per cent  the highest government salary). Over time, additional benefits like Dearness Relief (DR) have helped protect pensioners from the impact of rising inflation.

Additional benefits such as Dearness Relief (DR) which is currently set at 53 per cent of the basic pension, help protect pensioners from inflation. The DR is typically updated twice a year to match inflation rates, based on the Consumer Price Index (CPI), ensuring pensioners can preserve their purchasing power amid rising costs.

If the 8th CPC includes a 2.86 fitment factor, the minimum pension, currently Rs 9,000, could increase to about Rs 25,740 per month—an increase of 186 per cent. The maximum pension might also rise significantly, from Rs 1,25,000 to over Rs 3,57,500 per month. Further, the revised pensions could be further boosted by Dearness Relief (DR), along with higher gratuity limits and family pensions.