8th CPC: AIDEF demands Rs 69K as minimum pay

The All India Defence Employees’ Federation (AIDEF) has submitted fresh demands to the 8th Pay Commission (8th CPC) that could affect hundreds of thousands of central government employees and pensioners. In a series of letters addressed to the 8th CPC, the AIDEF has justified its four primary requests, which include advocating for higher family units for pay calculations, restoring the Old Pension Scheme, extending the commuted pension period, and modifying the 8th CPC Terms of Reference.

Based on their proposal of five family units, AIDEF has suggested a 3.83 fitment factor and a minimum pay of Rs 69,000 for central government employees. In their justification for these demands, the AIDEF argues that the 7th Pay Commission's pay calculations were based on three family units, which do not account for a family's responsibility towards their parents. They contend that larger family needs demand higher consumption requirements, justifying their request for increased pay and a higher fitment factor.

The AIDEF also proposes restoring the Old Pension Scheme (OPS) for central government employees who began their service on or after January 1, 2004, as the current National Pension System (NPS) creates uncertainty regarding the retirement corpus. The AIDEF contends that the NPS's future value depends on contribution levels, investment returns, and prevailing economic conditions at retirement. Consequently, they have requested the 8th CPC to abolish the NPS and UPS and restore the OPS.

Furthermore, the AIDEF is advocating for the commuted pension period for central government employees to be reduced from 15 years to 11 years. They base this demand on a recent decision by the Himachal Pradesh High Court, which examined how commuted pension parameters have evolved over time. The AIDEF asserts that factors such as commutation factors, interest rates, life expectancy, inflation, post-retirement expenses, and the economic environment have changed since the last revision of the rules. As a result, they have requested an 11-year pension commutation period.

Finally, the AIDEF has asked the 8th CPC to amend its Terms of Reference to include pension issues for pensioners who retired before January 1, 2026. They propose that the 8th CPC's ToR should address pension revision for past pensioners, revision of family pensions, parity between past and future pensioners, and the review of retirement benefits.