How the 8th CPC will revise pension
Every pay commission since the 5th has revised pension by multiplying the existing basic pension by a common fitment factor, then restarting Dearness Relief from zero. The 7th CPC used 2.57 and also offered notional pay fixation in the new matrix, whichever was more beneficial. The 8th CPC, constituted on 3 November 2025, is expected to follow the same structure with a fitment factor most commonly modelled between 1.92x and 2.86x.
Pension remains 50% of the last drawn basic pay (or 50% of the average of the last ten months, whichever is higher) for those with 20 or more years of qualifying service. Family pension continues at 30% of basic pay, with enhanced family pension for the first ten years.
8th pay commission salary calculator for pensioners — what to enter
Enter your existing basic pension as shown in your PPO, not the gross pension including Dearness Relief. Add your qualifying service if you retired with less than 20 years, since pension is then proportionate. If you commuted a portion of pension, enter the commuted percentage so the monthly deduction and its restoration after 15 years are reflected.
The calculator then shows revised basic pension, DR at the chosen rate, commutation deduction and the net monthly pension across fitment factors, so you can compare a conservative 1.92x scenario against an optimistic 2.86x one.
Pension arrears for pensioners
If the revision is effective from 1 January 2026 but the revised PPO is issued later, pensioners receive arrears for the intervening months on the difference between revised and existing monthly pension. Use the pension arrear calculator to work out the amount, and remember that arrears are taxable in the year of receipt with Section 89(1) relief available through Form 10E.