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  • 8th Pay Commission Update: Big news for pensioners! 67% pension, Rs 75 lakh gratuity proposed

8th Pay Commission Update: Big news for pensioners! 67% pension, Rs 75 lakh gratuity proposed

A thorough memorandum for the 8th Pay Commission has been prepared, containing great pensioner ideas. These recommendations might transform things for retired central government personnel if the administration embraces them.

2 Min read
Author : Richa Barua
Published : Apr 17 2026, 11:10 AM IST
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8th Pay Commission
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8th Pay Commission

A detailed memorandum has been officially submitted for the 8th Pay Commission. It includes some amazing proposals for pensioners that could change their lives if accepted.
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New Memorandum
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New Memorandum

A memorandum was filed on April 14, 2026. It focuses on protecting the financial future of retired central government staff, especially with rising inflation and living costs.

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Focus on Pension
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Focus on Pension

The memorandum's main point is its strong stand against the contribution-based National Pension System (NPS) and the new unified pension scheme. The NC-JCM is demanding their rollback and wants the Old Pension Scheme (OPS) back.
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Pension and Family Pension Structure
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Pension and Family Pension Structure

The memorandum proposes a big jump in pension. It suggests giving 67% of the last drawn salary as pension, up from the current 50%, so retirees can maintain their lifestyle.
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Demand for Age-Based Pension
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Demand for Age-Based Pension

The memo demands age-based pension hikes, as medical costs shoot up with age. The proposed structure is: 70% of last pay at 65 years, 75% at 70, 80% at 75, 85% at 80, 90% at 85, and 100% at 90 years.
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Change in Gratuity Rules
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Change in Gratuity Rules

The current way of calculating death and retirement gratuity is seen as a disadvantage for employees. The memo suggests calculating it based on 25 working days a month, not 30.
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Main Attraction of Gratuity
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Main Attraction of Gratuity

The biggest highlight for gratuity is a proposed three-fold increase in the maximum limit. The proposal is to raise it from the current Rs 25 lakh to Rs 75 lakh. It also wants to scrap the 16.5 times pay limit for those with over 33 years of service.
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Housing and Welfare Measures
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Housing and Welfare Measures

The proposals go beyond just pension. There's a demand to introduce House Rent Allowance (HRA) for pensioners to help them cover housing costs in both cities and villages.
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Medical Assistance
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Medical Assistance

For pensioners who need medical support, the memorandum has proposed a new 'Caretaker Allowance' to help them manage expenses.
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Fitment Proposal
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Fitment Proposal

The 51-page memo also suggests a new fitment factor. The NC-JCM has demanded raising the minimum basic pay from Rs 18,000 to Rs 69,000. To do this, they've proposed a fitment factor of 3.833 and doubling the annual increment rate from 3% to 6%.

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About the Author

RB
Richa Barua
With over two decades of experience in top media outlets like Times of India, International Business Times, and India Today, Richa currently leads Newsable and MyNation (Entertainment and Lifestyle) non-news team at Asianet News Network. Her expertise includes celebrity interviews, audience growth, and content strategy, backed by an Executive Program in Digital Marketing from IIM Calcutta, along with a journalism degree from Delhi University, a master's in media studies and corporate communications.
8th Pay Commission

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