8th Pay Commission: Employees Seek Pension Equal to 50% of Final Salary Plus DA
All India NPS Employees Federation has urged the 8th Pay Commission to introduce an assured pension system under the National Pension System (NPS), proposing a guaranteed pension equal to 50% of the employee’s final salary plus dearness allowance. The federation said market-linked returns under NPS are struggling to keep pace with inflation, especially for lower-paid employees.
The All India NPS Employees Federation (AINPSEF) has urged the upcoming 8th Pay Commission to introduce an assured pension system for government employees covered under the National Pension System (NPS), proposing that retirees receive a pension equal to 50 per cent of their final salary along with dearness allowance.
The federation said the proposal is aimed at protecting employees from market volatility and ensuring stable post-retirement income, especially for lower-income workers and those with shorter service durations. 8th Pay Commission: Why Govt Employees Want Family Unit Formula Changed From 3 to 5.
8th Pay Commission: Proposal for Assured Pension Under NPS
In its memorandum submitted to the 8th Pay Commission, AINPSEF recommended that the government continue contributing its share under the NPS while also guaranteeing a fixed minimum pension after retirement.
Currently, employees contribute 10 per cent of their basic pay and dearness allowance to NPS Tier-I accounts, while the government contributes 14 per cent. The federation argued that market-linked pension returns under the existing system have become increasingly uncertain due to fluctuations in financial markets and rising inflation. 8th Pay Commission: NCCM, AIDEF and Maharashtra Old Pension Body Push for 3.83 Fitment Factor.
According to AINPSEF, returns generated under the NPS have failed to adequately match inflationary pressures in recent years, raising concerns about the future financial security of retirees.
The organisation highlighted that employees in lower pay grades often retire with very limited pension support, particularly those who spent years in contractual, work-charge or daily wage roles before regularisation.
The federation claimed that pension payouts in some cases remain between Rs 300 and Rs 3,000 per month, making it difficult for retirees to sustain themselves financially.
Family Pension and Social Security Demands
AINPSEF has also proposed a family pension structure under which dependents would receive around 60 per cent of the pension amount after the pensioner’s death.
The federation said such a provision would help ensure long-term social security and financial stability for families of retired employees.
The memorandum further noted that employees opting for voluntary retirement, premature retirement or those compulsorily retired are often left with inadequate pension support due to lower accumulated corpus amounts.
8th Pay Commission Consultation Process Underway
The 8th Pay Commission has initiated consultations with employees, pensioners and stakeholders through questionnaires and meetings focused on salary structure, minimum pay, pension benefits, annual increments and service conditions.
Officials said the consultation process is intended to gather detailed feedback before recommendations are finalised for central government employees and pensioners. The discussions are expected to play a key role in shaping future salary and pension reforms under the 8th Pay Commission framework.
(The above story first appeared on LatestLY on May 15, 2026 01:50 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).