8th Pay Commission Pension Calculator 2026: DR Hike, Fitment Factor & Full Pension Chart for Central Govt Retirees

8th Pay Commission Pension Calculator 2026: The Government of India is expected to increase Dearness Relief (DR) from 55% to 59%, effective 1 July 2025, for over 1 crore central government pensioners. This increase comes ahead of the much-expected 8th Pay Commission, which is likely to be implemented from 1 January 2026. Pensioners will now get more monthly income, and their basic pension is also expected to rise after the new pay commission is announced.

What Is the 8th Pay Commission?

The Pay Commission is a government-appointed body that decides the salaries, pensions, and allowances of central government employees and pensioners. The goal is to revise these amounts every 10 years to keep up with rising inflation and living costs.

So far, India has seen 7 pay commissions. The 7th Pay Commission was implemented on 1 January 2016, with a fitment factor of 2.57x. It removed the grade pay system and introduced a new pay matrix. It also revised pension calculations.

Now, the 8th Pay Commission is expected around January 2026. This will again revise:

Basic salary for current employees
Pension and family pension for retired employees
Allowances like HRA, DA, DR, TA, etc.

Pensioners are especially waiting because their Dearness Relief (DR) has reached 59%, which is a signal that a new CPC is due.

What Happened on 1 July 2025?

As of 30 June 2025, Dearness Relief (DR) for central government pensioners was 55%. On 1 July 2025, it is set to increase by another 4%, taking the total to 59%.

This is based on inflation figures measured by the All India Consumer Price Index for Industrial Workers (AICPI-IW). This index is published monthly by the Labour Bureau, and the average for the past 6 months is used to decide the DA/DR hike.

This is the second hike in 2025:

January 2025: DR increased to 55%
July 2025: DR is set to 59%

Why This Hike Is Important

This DR hike is not just a routine increase. It also signals that:

Inflation is rising consistently
The current pension amounts are losing value
A new Pay Commission is necessary to reset the base values

When DR crosses 50%, it is usually a strong indicator that the government will announce a new CPC soon. This has happened in the past:

In 2014, DA reached 100% before 7th CPC was announced
In 2005, DA crossed 50% before 6th CPC

So, with DR now at 59%, expectations are high that the 8th CPC will be notified before the end of 2025.

How Much More Will Pensioners Get with 59% DR?

Dearness Relief (DR) is added on top of your basic pension to offset inflation. As per the latest hike, DR is expected to increase from 55% to 59% effective July 2025.

Let’s understand this with a simple and powerful table showing exactly how much more you’ll receive now:

DR Increase Table:

Basic Pension (₹)	DR @ 55% (Old)	DR @ 59% (New)	Monthly Increase (₹)
₹10,000	₹5,500	₹5,900	₹400
₹12,000	₹6,600	₹7,080	₹480
₹15,000	₹8,250	₹8,850	₹600
₹18,000	₹9,900	₹10,620	₹720
₹20,000	₹11,000	₹11,800	₹800
₹22,000	₹12,100	₹12,980	₹880
₹25,000	₹13,750	₹14,750	₹1,000
₹28,000	₹15,400	₹16,520	₹1,120
₹30,000	₹16,500	₹17,700	₹1,200
₹32,000	₹17,600	₹18,880	₹1,280
₹35,000	₹19,250	₹20,650	₹1,400
₹38,000	₹20,900	₹22,420	₹1,520
₹40,000	₹22,000	₹23,600	₹1,600
₹45,000	₹24,750	₹26,550	₹1,800
₹50,000	₹27,500	₹29,500	₹2,000
₹55,000	₹30,250	₹32,450	₹2,200
₹60,000	₹33,000	₹35,400	₹2,400
₹65,000	₹35,750	₹38,350	₹2,600
₹70,000	₹38,500	₹41,300	₹2,800
₹75,000	₹41,250	₹44,250	₹3,000
₹80,000	₹44,000	₹47,200	₹3,200
₹85,000	₹46,750	₹50,150	₹3,400
₹90,000	₹49,500	₹53,100	₹3,600
₹95,000	₹52,250	₹56,050	₹3,800
₹1,00,000	₹55,000	₹59,000	₹4,000

So pensioners will now receive ₹720 to ₹4,000 more per month.

Doubt: Why Only ₹4,000 Increase in Monthly Pension Now Despite 2.86x Fitment Coming?

Clarification: The ₹720 to ₹4,000 monthly increase you’re seeing now is not due to the 8th Pay Commission. It is only due to a Dearness Relief (DR) hike from 55% to 59% in July 2025 — a regular bi-annual hike based on inflation.

This is not the 8th CPC increase — it’s just a 4% expected hike in DR effective July 2025.

This increased amount will be paid with the July pension, which usually comes in the first week of August 2025. The difference for July will be paid as arrears.

Also Read: 8th Pay Commission Salary Calculator: Instantly Check Your Revised Pay, Pension, DA & Arrears

Real Example of July 2025 Pension Slip

Let’s say a retired government teacher is getting:

Basic Pension: ₹30,000
DR before: 55% → ₹16,500
DR from July 2025: 59% → ₹17,700
New Total Pension: ₹47,700/month
Arrears for July 2025: ₹1,200

So in August, they will get:

₹47,700 (New Pension)
- ₹1,200 (Arrears for July)
  = ₹48,900 total

How Pension Is Calculated Right Now (7th Pay Commission)

Under the 7th CPC, pension is calculated like this:

Pension = 50% of Last Basic Pay
(if 20+ years of service; pro-rata otherwise)
Family Pension = 30% of Last Basic Pay
(for surviving spouse/family)
Dearness Relief (DR) is added as a percentage every 6 months

So, if you retired with a basic pay of ₹60,000:

Pension = ₹30,000
DR @ 59% = ₹17,700
Total monthly pension = ₹47,700

8th Pay Commission Will Change These Values

When the 8th Pay Commission is implemented (likely from 1 January 2026), your pension will be recalculated using a new fitment factor.

Past Fitment Factors:

6th CPC = 1.86×
7th CPC = 2.57×
8th CPC Expected = 2.86× (or more)

Example:

If your pension under 7th CPC is ₹30,000 (with 2.57x fitment),
Your new pension may be:

₹30,000 × (2.86 ÷ 2.57) ≈ ₹33,400

This new amount will become your revised basic pension. Then, DR will restart from 0%.

Also Read: 8th Pay Commission Salary Revision: Full Level-Wise Salary & Pension Hike Chart for 2026 (Level 1 to 18)

8th Pay Commission Pension Calculator Table 2026

8th CPC Pension Chart 2026:

Last Basic Pay (7th CPC)	Current Pension (50%)	Revised Pension (Approx, Fitment 2.86x)	Monthly Pension Increase	% Increase in Pension	Remarks
₹40,000	₹20,000	₹22,860	₹2,860	14.3%	DR resets to 0%; new base begins
₹45,000	₹22,500	₹25,740	₹3,240	14.4%	Fitment applied to 50% base
₹50,000	₹25,000	₹28,600	₹3,600	14.4%	Notional + DA merger benefit
₹55,000	₹27,500	₹31,460	₹3,960	14.4%	Pension increase without DA for now
₹60,000	₹30,000	₹34,320	₹4,320	14.4%	DR reinitializes from 0%
₹65,000	₹32,500	₹37,180	₹4,680	14.4%	Consistent gain post-revision
₹70,000	₹35,000	₹40,040	₹5,040	14.4%	Big gain for mid-senior retirees
₹75,000	₹37,500	₹42,900	₹5,400	14.4%	Becomes new base for future DR
₹80,000	₹40,000	₹45,760	₹5,760	14.4%	Strong upward revision
₹90,000	₹45,000	₹51,480	₹6,480	14.4%	Aligns with Level 17/18 retirements

What Happens to DR After 8th CPC?

Just like after 7th CPC in 2016:

DR will be reset to 0%
New DR will be announced again every 6 months
It will be based on the same AICPI formula

So yes, you may feel that you are losing DR at first.

But remember:

“Even 0% DR on ₹44,520 is better than 59% DR on ₹40,000.”

Because your basic pension will be higher, and DR will start increasing again from July 2026.

Family Pension Will Also Rise

Level-wise Comparison: Initial Drop + Gradual DA-Based Rise

Family pension is 30% of last basic pay. They also get full DR.

Family Pension after 8th CPC:

Last Basic Pay (7th CPC)	Current Family Pension (30%)	DA @ 59% (Jul 2025)	Total Received (Now)	Revised Pension (2.86x Basic × 30%)	DR Resets to 0% (Jan 2026)	Net Difference
₹26,700	₹8,010	₹4,725	₹12,735	₹22,072 × 30% = ₹6,621	₹6,621	₹6,114
₹30,000	₹9,000	₹5,310	₹14,310	₹25,740 × 30% = ₹7,722	₹7,722	₹6,588
₹35,000	₹10,500	₹6,195	₹16,695	₹30,030 × 30% = ₹9,009	₹9,009	₹7,686
₹40,000	₹12,000	₹7,080	₹19,080	₹34,320 × 30% = ₹10,296	₹10,296	₹8,784
₹45,000	₹13,500	₹7,965	₹21,465	₹38,610 × 30% = ₹11,583	₹11,583	₹9,882
₹50,000	₹15,000	₹8,850	₹23,850	₹42,900 × 30% = ₹12,870	₹12,870	₹10,980
₹55,000	₹16,500	₹9,735	₹26,235	₹47,190 × 30% = ₹14,157	₹14,157	₹12,078
₹60,000	₹18,000	₹10,620	₹28,620	₹51,480 × 30% = ₹15,444	₹15,444	₹13,176
₹65,000	₹19,500	₹11,505	₹31,005	₹55,770 × 30% = ₹16,731	₹16,731	₹14,274
₹70,000	₹21,000	₹12,390	₹33,390	₹60,060 × 30% = ₹18,018	₹18,018	₹15,372
₹75,000	₹22,500	₹13,275	₹35,775	₹64,350 × 30% = ₹19,305	₹19,305	₹16,470
₹80,000	₹24,000	₹14,160	₹38,160	₹68,640 × 30% = ₹20,592	₹20,592	₹17,568
₹85,000	₹25,500	₹15,045	₹40,545	₹72,930 × 30% = ₹21,879	₹21,879	₹18,666
₹90,000	₹27,000	₹15,930	₹42,930	₹77,220 × 30% = ₹23,166	₹23,166	₹19,764
₹95,000	₹28,500	₹16,815	₹45,315	₹81,510 × 30% = ₹24,453	₹24,453	₹20,862
₹1,00,000	₹30,000	₹17,700	₹47,700	₹85,800 × 30% = ₹25,740	₹25,740	₹21,960
₹1,10,000	₹33,000	₹19,470	₹52,470	₹94,380 × 30% = ₹28,314	₹28,314	₹24,156
₹1,20,000	₹36,000	₹21,240	₹57,240	₹1,02,960 × 30% = ₹30,888	₹30,888	₹26,352
₹1,30,000	₹39,000	₹23,010	₹62,010	₹1,11,540 × 30% = ₹33,462	₹33,462	₹28,548

Yes, DR will reset to 0%, but the pension amount itself will be much higher.

What Happens Next?

After Jan 2026, DA restarts from 0% and rises 4% every 6 months (expected trend).
That means:
- July 2026 → DA = 4%
- Jan 2027 → DA = 8%
- July 2027 → DA = 12%
  (and so on…)
So, these revised pensions will soon surpass today’s amounts by early 2027.

What About Arrears?

If the 8th CPC is implemented from 1 January 2026, then pensioners will get:

Revised Pension from Jan 2026
Arrears for Jan–March 2026
Possibly also DR arrears (if delay in notification)

This amount will be paid in April or May 2026. In 2016, arrears were paid in one go after the Gazette notification.

So pensioners should keep checking:

Why This DR Hike Happened (Explained in Simple Words)

The 4% DR hike (from 55% to 59%) was based on inflation, not politics or elections.

Every month, the Labour Bureau publishes the All India Consumer Price Index for Industrial Workers (AICPI-IW). This index tracks the cost of essential items — food, fuel, medicines, clothes, rent, etc.

Government rules say:

Average AICPI over 6 months → DA/DR must be revised
January DA is based on July–December AICPI
July DA is based on January–June AICPI

So from January to June 2025, inflation rose steadily. That’s why the government had to raise DR by 4%.

When Will the 8th Pay Commission Be Announced?

As of now (July 2025), there’s no official notification from the Government. But here’s what’s expected:

Event	Date
DR reaches 59%	1 July 2025
Govt forms 8th CPC panel	Likely by Sep–Dec 2025
Implementation date	1 January 2026 (expected)
Gazette notification	Jan–Feb 2026 (tentative)
Pension arrears credited	By April 2026

Note: Formation of the Pay Commission is done by Cabinet decision, not Finance Ministry alone.

What Will Be the Next DR Hike?

The next DA/DR revision will happen in January 2026, based on inflation from July–December 2025.

Early estimates suggest:

AICPI is still rising
Next hike may be another 3% or 4%
But if 8th CPC is announced, DR will reset to 0%

So either:

DR will increase to 62% in Jan 2026 (if no CPC)
OR, DR will reset to 0% and new DR starts from scratch

How DR Works with Pay Commissions – Quick History

Pay Commission	Year of Implementation	DA/DR Just Before	DR After CPC	Fitment/Multiplication Factor	Key Features Introduced
1st CPC	1946 (Implemented 1947)	Not applicable	Not applicable	₹35 minimum wage suggested	Post-independence wage structure creation
2nd CPC	1959	Not standardised	Not standardised	₹80 minimum wage	DA concept slowly formalised
3rd CPC	1973	~30%	Continued	Introduced concept of % based DA	DA linked to price index
4th CPC	1986	97%	Reset to 0%	₹750 min pay, ₹8,000 max	DA merged in basic; new pay scales introduced
5th CPC	1996 (Effective 1 Jan 1996)	148%	Reset to 0%	1.86× (average fitment)	DA merged in basic; large pay scale rationalisation
6th CPC	2006 (Effective 1 Jan 2006)	24% (on 5th CPC)	Reset to 0%	1.86× + Grade Pay	Pay Bands + Grade Pay introduced
7th CPC	2016 (Effective 1 Jan 2016)	125% (on 6th CPC)	Reset to 0%	2.57×	Grade Pay abolished, Pay Matrix introduced
8th CPC (Expected)	2026	59% (on 7th CPC)	Will Reset to 0%	Expected: 2.86× or higher	Full Pay Matrix restructuring likely

This is standard practice — DR is zeroed, but pension increases with fitment factor, so no one loses money.

Recent Related Updates Pensioners Must Know

Here are some other updates central govt pensioners should know as of July 2025:

NPS Withdrawals: Govt may bring tax-free withdrawal slab for NPS retirees soon
EPFO Pension Ceiling: Likely to be revised in Budget 2026
Commutation Tables: May be updated in 8th CPC for better benefits
Medical Allowance: ₹1,000 per month may be increased in next CPC
Gratuity Limit: Likely to increase from ₹20 lakh to ₹25 lakh

Where to Check Official DR and CPC Updates?

Stay away from fake YouTube videos or WhatsApp forwards. Always check only:

Pensioners’ Portal – https://pensionersportal.gov.in
Ministry of Finance – https://finmin.nic.in
Department of Expenditure – https://doe.gov.in
Central Pay Commission Page (once announced)

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Also Read: Big Changes Coming for ONGC Employees and Retirees: ONGC Salary After 8th Pay Commission

FAQs (Most Common Queries)

What is the minimum pension for 8th Pay Commission?

As per current expectations (based on trends from the 6th and 7th CPC), the minimum pension under the 8th Pay Commission is likely to be between Rs. 9,180 to Rs. 10,017.
Here’s the breakdown:
Under the 7th CPC, minimum pension = 50% of Level 1 Basic Pay = Rs. 18,000 × 50% = Rs. 9,000
With the expected fitment factor of 2.86, the Level 1 pay may rise to approx. Rs. 20,034
Thus, expected minimum pension: Rs. 10,017 (approx.)
Note: This figure will again become the base for DA from Jan 2026, which will restart from 0%.

When is the 8th Pay Commission salary calculator coming?

No official tool is released by the government yet. However, based on past CPC structures and fitment multipliers, unofficial calculators are expected by Q4 2025. Most reliable calculators will appear after:
The 8th CPC report submission (expected mid-2025)
The Cabinet approval (likely late 2025)
Finalization of fitment factor, pay matrix & DR reset
SalaryAlert and other public platforms will host instant calculators shortly after the government notifies the 8th CPC implementation.

What will be the 8th Pay Commission fitment factor?

The expected fitment factor under the 8th CPC is 2.86, though this is subject to official approval.
Here’s how it has increased historically:
6th CPC: 1.86
7th CPC: 2.57
8th CPC (expected): 2.86
Some sources hint it could go up to 3.00, depending on inflation, DA level at merger (59%), and political pressure.

How is pension calculated in Pay Commission?

Pension = 50% of Last Drawn Basic Pay (for those with 10+ years service)
Then:
Apply fitment factor to the old pension for revised CPC
Add Dearness Relief (DR) on top (post-CPC reset to 0%)
Example:
Last basic pay = Rs. 60,000
Pension = Rs. 30,000 (50%)
After 8th CPC (2.86×): Rs. 30,000 × 2.86 = Rs. 85,800 (new base pension)
DR will restart from 0% from Jan 2026.

What is the DA for January 2025?

As per AICPI index projections, the DA from Jan 2025 has already reached 55% for central government employees.
Breakdown:
July 2024 DA: 53%
Jan 2025 hike: 2%
DA as on 31 Jan 2025: 55%
July 2025 hike: 4% (expected)
DA w.e.f. 01 July 2025: 59% (4% increase expected)
This will be the final DA before 8th CPC resets it to 0% in Jan 2026.

What is the salary reform of 8th Pay Commission?

The 8th CPC is expected to:
Raise the minimum pay from Rs. 18,000 to around Rs. 20,000+
Introduce revised pay levels in the pay matrix
Implement 2.86× fitment factor
Reset DA/DR to 0%
Possibly recommend grade pay restructuring and performance-linked pay
It is also likely to suggest digitized pension processing, NPS-OPS bridging options, and automatic inflation tracking.

Will DA become zero after 8th Pay Commission?

Yes, DA (for employees) and DR (for pensioners) will reset to 0% from 1st January 2026 after 8th CPC implementation.
This has happened during every previous CPC:
5th CPC (1996): DA reset
6th CPC (2006): DA reset
7th CPC (2016): DA reset
Fresh DA/DR starts from 0% and increases every 6 months based on AICPI.

What is the salary increase for 8th Pay Commission in 2026?

Expected salary hike = Around 26% to 30% overall
Example:
Current basic: Rs. 50,000
New basic (with 2.86× fitment): Rs. 57,200
Also:
HRA, TA, and other allowances will also be recalculated
Total in-hand increase could range between Rs. 6,000 to Rs. 25,000+ per month depending on pay level

What is the salary of Grade 2400 in 8th Pay Commission?

In 7th CPC, Grade Pay 2400 corresponds to Level 4, with basic pay starting at Rs. 25,500.
After 8th CPC (2.86×):
Expected new basic pay: Rs. 25,500 × 2.86 = Rs. 29,205 (approx.)
Allowances will be recalculated on this new basic.

How to calculate salary according to fitment factor?

Formula:
New Basic Pay = Old Basic Pay × Fitment Factor
Example:
Old Pay: Rs. 40,000
Fitment: 2.86
New Pay = 40,000 × 2.86 = Rs. 1,14,400
Only Basic Pay changes. HRA, TA, etc., will be calculated freshly on this.

What is the fitment factor for 8th Pay Commission?

As per the latest reports:
Fitment Factor likely = 2.86
Some optimistic users expect 3.00, but that’s speculative
Serious readers generally agree it will be between 2.80 to 2.95, depending on political, financial, and inflation factors.

What is Commission Pay?

Commission Pay usually refers to:
In private sector: Income earned as a percentage of sales
In govt sector (context of CPC): “Commission” refers to the Pay Commission appointed by the government to revise salaries, pensions, and service benefits of central government employees.
It has nothing to do with percentage-based commissions like in marketing.

Will pension increase in 8th Pay Commission?

Yes, significantly.
Pensioners will get a revised basic pension (Old pension × 2.86)
DR will reset to 0% but begin again from July 2026
Example:
Old pension: Rs. 30,000
New (post 8th CPC): Rs. 30,000 × 2.86 = Rs. 85,800

What is the formula for pension salary?

For central govt employees:
Pension = (Last Basic Pay × 50%)
Minimum qualifying service: 10 years
For family pension: 30% of last basic pay
On CPC revision: Revised Pension = Old Pension × Fitment Factor

How much pension will I get?

Example Cases:
Last Basic Pay = Rs. 60,000
Pension (7th CPC) = Rs. 30,000
After 8th CPC = Rs. 30,000 × 2.86 = Rs. 85,800
Add DR every 6 months after Jan 2026.
Use SalaryAlert’s upcoming pension calculator tool to know your personalized amount in seconds.

Final Summary

From 1 July 2025, all central government pensioners will get 59% Dearness Relief, which means an increase of ₹700–₹2,000 per month depending on basic pension.

The 8th Pay Commission is now strongly expected to be announced before December 2025. It may be implemented from 1 January 2026 with a fitment factor of around 2.86x.

After the 8th CPC, your pension will go up by ₹2,000 to ₹5,000 depending on your last pay. But DR will reset to 0% and start increasing again from July 2026.

All arrears (from Jan 2026) will be paid in full — just like in the 7th CPC.

So now you know exactly how your pension will change under the 8th Pay Commission. For daily updates on salary, pension, DA hikes, and government orders, visit us anytime at SalaryAlert.

Official & Authoritative Government Links

Ministry of Finance (Department of Expenditure)

The nodal ministry responsible for pay commissions, DA orders, fitment factors, and pay matrix updates.

Website:
https://doe.gov.in

DA Orders & Office Memorandums (OMs):
https://doe.gov.in/orders-circulars

7th Central Pay Commission (Archived Report)

Though the 8th CPC is not yet formed, the 7th CPC report gives insight into structure, ToR, fitment, and recommendations.

Complete 7th CPC Report (PDF & Summary):
https://doe.gov.in/report-central-pay-commission/16

Pay Matrix Table by 7th CPC (PDF):
https://doe.gov.in/files/cenetral-pay_document/7thCPC_revisedpayrules25072016.pdf

Press Information Bureau (PIB)

Government’s official news agency. Any official announcement regarding 8th CPC, fitment, or implementation will come here.

Website:
https://pib.gov.in

Search for 8th Pay Commission-related press releases:
https://www.pib.gov.in/allRel.aspx

DoPT – Department of Personnel & Training

Responsible for service conditions, rules, and allowances for Group C posts like MTS.

Website:
https://dopt.gov.in

Orders & Notifications Section:
https://dopt.gov.in/notifications/orders#

OMs Section:
https://doptcirculars.nic.in/OM/SearchOMNew.aspx

Also Refer To Our Legal Pages (For Transparency & Trust)

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