8th Pay Commission: The Government of India has implemented the Unified Pension Scheme in the country from April 1, 2025. Along with this, the 8th Pay Commission can also be implemented from January 1, 2026. A lot is going to change with the new pay commission and the new pension system. Not only the salary of government employees but also their pension will see big changes. As expected, the salary of Level 1 in the new Pay Commission can be Rs 34,560 and Level 18 can be Rs 4.8 lakh. Today we will try to understand here how the Pay Commission will affect UPS.

50% pension of salary for those who work for 25 years

The Government of India implemented the New Pension Scheme in the year 2004. Since then, employees have been demanding the Old Pension Scheme. In OPS, employees did not have to contribute anything from their salary for pension. In NPS, they have to pay 10 percent of their basic pay every month for pension. In this, the government contributes 14 percent. The whole dispute was about this contribution and fixed pension. Now those who have worked for 25 years in UPS will be given 50 percent of the salary of the last 12 months as pension.

The term of the 7th Pay Commission is ending on December 31, 2025

UPS will be implemented from the next financial year. Employees included in it will start getting its benefits from 2029. To get half the pension of the salary, you will have to work for 25 years. Employees who retire before this will be given the benefit of UPS on the basis of years of service. To get a minimum pension of Rs 10,000, you will have to work for at least 10 years. On the other hand, the term of the 7th Pay Commission is ending on December 31, 2025. The government implements a new pay commission every 10 years.

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The fitment factor in the 8th Pay Commission is likely to be 1.92

Many media reports have claimed that the fitment factor in the 8th pay commission can be made 1.92. Due to this, the minimum salary can increase from the current Rs 18,000 to Rs 34,560. Apart from this, the maximum salary will also increase from Rs 2.5 lakh to Rs 4.8 lakh.

Minimum pension will be Rs 20,736 and maximum pension will be Rs 2,88,000

According to a report by Financial Express, the first batch of people recruited in 2004 will complete the 25-year retirement period by 2029. If the 8th Pay Commission is implemented on time, then at the rate of 4% dearness allowance (DA), their DA will be 20% of the basic salary by 2029. In such a situation, 20% DA on a salary of Rs 34,560 will be Rs 6,912 and their pension will be Rs 20,736. Similarly, on a salary of Rs 4.8 lakh, DA will be Rs 96,000 and their pension will be Rs 2,88,000.

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By depositing just Rs 210 every month, you can get a maximum pension of Rs 5,000 every month after retirement i.e. after 60 years. The name of this government scheme is Atal Pension Yojana in which guaranteed pension is given every month. In this you can invest based on your investment ability and the pension you will get after retirement.

What is Atal Pension Yojana?

The government has brought Atal Pension Yojana in the Budget 2015-16 keeping in view the security of income in old age. Through this scheme, the government is encouraging the common people, especially those associated with the unorganized sector, to save as much as possible. People associated with the unorganized sector also have to be protected from the risk of not having income after retirement. This scheme is being run by Pension Fund Regulatory and Development Authority (PFRDA).

Will get pension of Rs 5,000 every month

Under Atal Pension Yojana, customers get pension ranging from Rs 1,000 to Rs 5,000 every month. The Government of India guarantees the minimum pension benefit. The central government contributes 50 percent of the subscriber’s contribution or Rs 1,000 annually, whichever is less. Government contributions are paid to people who are not covered under any statutory social security scheme and are not taxpayers. Under the scheme, pension of Rs 1,000, 2000, 3,000, 4,000 and 5,000 is available. Investment also depends on the amount of pension.

Atal Pension Yojana is for all citizens of India between the age of 18 to 40 years.

You will have to pay Rs 210 every month

According to the current rules, if at the age of 18 years a maximum of Rs 5,000 is added to the scheme for monthly pension, then you will have to pay Rs 210 and Rs 7 every month. If you pay the same amount every three months, you will have to pay Rs 626 and if you pay every six months, you will have to pay Rs 1,239. To get a pension of Rs 1,000 per month, if you invest at the age of 18, you will have to pay Rs 42 per month.

You will get more benefits if you join at a young age.

Suppose if you join for a pension of Rs 5,000 at the age of 35, then you will have to deposit Rs 5,323 every 6 months for 25 years. In such a situation, your total investment will be Rs 2.66 lakh, on which you will get a monthly pension of Rs 5 thousand. Whereas if you join at the age of 18, your total investment will be only Rs 1.04 lakh. That means, for a single pension, you will have to invest about Rs 1.60 lakh more.

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The government is now going to increase the limit of pension, after which your pension can be doubled. Hearing is currently going on in the Supreme Court on this. Please tell that after this decision of the government, no matter how low your salary is, but your pension will be calculated only on Rs 15,000.

Let us tell you that the matter of abolishing this salary limit of Employees’ Provident Fund Organization is going on in the Supreme Court. Along with this, the calculation of pension in EPFO can also be done on the previous salary i.e. higher salary category. After this decision of EPFO, there will be a bumper increase in the pension received by the employees. With this decision, the employees will get many times more benefits of pension.

Hearing was held in August

Let us tell you that on August 12 last year, the Supreme Court had adjourned the hearing of a batch of petitions filed by Union of India and EPFO, which said that the pension of the employees cannot be limited. The hearing of these cases is going on in the court.

How much is the maximum pension now?

Employed people are members of the Employees’ Provident Fund Organization, who are also considered members of the EPS. All employees contribute 12% of their salary to EPF. Along with this, the employee gets the same amount from the company and 8.33 percent of it also goes to the Employees’ Pension Scheme. Talking about the maximum pensionable salary at this time, it is Rs 15,000.

Pension is available after the age of 58 years.

Let us tell you that any employee gets the benefit of pension after 58 years. For this, it is mandatory for the employees to work for at least 10 years. Along with this, tell that employees who contribute to EPF are also eligible for EPS.

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In the Employees’ Pension Scheme, the maximum pension is fixed at Rs.15 thousand. After this it is sealed. Meaning, even if the basic salary is more than Rs 15,000 per month, your pension will be calculated on the maximum salary of Rs 15,000.

EPS Pension can increase manifold!

The ceiling of pension matter is pending with the Supreme Court bench. It has been heard at many levels. The union is continuously demanding that the capping on pension should be abolished. If the decision is in favor of the employees, then the calculation of pension (Employee’s Pension Scheme) can also be done on the last salary i.e. high salary bracket.

With this decision, it is possible to increase the pension of employees up to 300%. The condition for getting pension under EPS is that it is necessary to contribute to the Employees’ Provident Fund (EPF) for 10 years. At the same time, the weightage of 2 years is available on completion of 20 years of service. Removing the ceiling will make a big difference.

How will your pension increase in EPS-95?

According to the existing rules, if an employee is doing a job from June 1, 2015 and if he wants to take pension after completing 14 years of service, then his pension would be calculated at Rs 15,000 only. Whether the employee is in basic salary of 20 thousand rupees or 30 thousand rupees.

According to the old formula, the employee will get a pension of about Rs 3000 from June 2, 2030, on completion of 14 years. The formula for calculation of pension is- (Service Historyx15,000/70). But, if the ceiling of pension is abolished, then the pension of the same employee will increase.

Example No.1

Suppose the salary (Basic Salary + DA) of an employee is at 20 thousand rupees. Calculating from the formula of pension, his pension will become Rs.4000 (20,000X14)/70 = Rs.4000. Similarly, the higher the salary, the more he will get the benefit of pension. There can be a 300% jump in the pension of such people.

Example No.-2

Suppose the job of an employee is 33 years. His last basic salary is 50 thousand rupees. Under the current system, the calculation of pension would have been done only on the maximum salary of 15 thousand rupees. In this way (Formula: 33 Years+2= 35/70×15,000) the pension would have been Rs 7,500 only. This is the maximum pension in the current system. But, after removing the pension ceiling, adding pension according to the last salary, they will get a pension of 25000 thousand rupees. Means (33 years+2= 35/70×50,000= Rs 25000).

According to the rules of EPFO , if an employee contributes to the EPF continuously while working for 20 years or more, then two more years are added to his service. In this way, 33 years of service was completed, but pension was calculated for 35 years. In such a situation, the salary of that employee can increase by 333 percent.

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