Fitment Factor, Pension Revision and Constitutional Mandate: Why the 8th Pay Commission Must Deliver Substantive Justice to Pensioners ?
By Lokanath Mishra, The Chief Adviser, The All India Pensioners Association of CBIC:
In recent times, apprehensions have been deliberately created regarding the alleged denial of pension revision to existing pensioners under the 8th Central Pay Commission (8th CPC), citing the presence of a “validation clause.” Such apprehensions are not only misconceived but legally untenable, constitutionally impermissible, and contrary to decades of settled jurisprudence governing pay and pension reforms in India. The validation clause has been challenged in the Apex Court.
It must be stated unequivocally that once the 8th CPC determines and the Government notifies the fitment factor, revision of pension becomes automatic, inevitable, and binding. No Pay Commission in India’s constitutional history has revised pay without revising pension. Any attempt to do so would violate fundamental rights guaranteed under the Constitution of India.
Pension Is Not a Charity — It Is a Constitutional Right
The Supreme Court of India has consistently held that pension is not a bounty or ex-gratia payment, but a deferred portion of wages earned through years of service. The landmark judgment in D.S. Nakara & Others v. Union of India (1983) laid down the unambiguous principle that:
“Pensioners form a homogeneous class and cannot be arbitrarily divided for the purpose of pension benefits.”
Denying pension revision after revising pay would amount to hostile discrimination, violating Article 14 (Right to Equality) of the Constitution. Further, pension is intrinsically linked to the right to life with dignity under Article 21, especially in old age when healthcare costs, dependency, and vulnerability increase manifold.
Additionally, pension constitutes property under Article 300A, and any erosion of its real value through inflation without commensurate revision is constitutionally impermissible.
Fitment Factor: The Backbone of Pay and Pension Revision
The fitment factor is the multiplier applied to the existing basic pay and pension to determine revised figures under a new Pay Commission. It impacts:
• Basic pay and pension
• Dearness Allowance base
• Future increments
• Commutation value
• Family pension
• Overall economic security of retirees
Once notified, the fitment factor applies universally and uniformly. There is no legal mechanism to apply it only to serving employees while excluding pensioners. Any such attempt would be struck down by courts as arbitrary and unconstitutional.
Historical Precedent Leaves No Scope for Doubt
The 7th Pay Commission adopted a fitment factor of 2.57, increasing the minimum basic pay from ₹7,000 to ₹18,000. Despite initial administrative resistance, pension revision was ultimately implemented for all pensioners, reaffirming the principle of parity.
This pattern has remained consistent across all Pay Commissions. Therefore, fears surrounding non-revision of pension under the 8th CPC are factually incorrect and legally unsustainable.
Economic Reality Demands a Higher Fitment Factor
Inflation, erosion of purchasing power, rising healthcare costs, and global economic instability have severely impacted the financial security of pensioners. While market analysts have projected conservative figures—ranging from 1.8 to 2.46—such estimates fail to capture the lived reality of pensioners.
Even former Finance Secretary S.C. Garg, while advocating fiscal prudence, has acknowledged that a factor close to 2.0 may be realistic. However, realism cannot be divorced from social justice obligations of the State.
All India Pensioners’ Association of CBIC: A Reasoned and Responsible Stand
The All India Pensioners’ Association of CBIC, after a thorough examination of:
• Domestic economic indicators
• Global geopolitical instability
• Inflationary pressures
• Healthcare cost escalation
• Shrinking real value of pensions
has reached a well-reasoned conclusion that the fitment factor under the 8th CPC should not be less than 3.0.
This demand is neither extravagant nor populist—it is a necessary corrective to years of stagnation, erosion, and delayed justice.
Comprehensive Welfare Measures Are Imperative
The Association has further emphasized that mere pension revision is insufficient unless accompanied by broader social security measures, including:
- Healthcare Security Beyond CGHS
Given the limitations of CGHS and its uneven availability, additional comprehensive health insurance coverage must be provided to pensioners, fully funded by the Government.
- Tax Justice for Pensioners
• Pension income and interest on bank deposits should be exempt from income tax
• Pensioners do not earn wages; taxing survival income is morally and economically unjust - Restoration of LTC Benefits
Leave Travel Concessions (LTC) must be extended to pensioners to ensure mobility, social inclusion, and mental well-being in advanced age.
- Reduction of Commutation Restoration Period
The existing 15-year commutation recovery period is excessive and unjust. It must be reduced to less than 10 years, in line with actuarial fairness and international best practices.
- Annual Pension Enhancement
Pension must be enhanced every year, over and above DA neutralisation, to protect against long-term inflation and declining health capacity.
Court Judgments Must Be Implemented In Rem
One of the most persistent injustices faced by pensioners is selective implementation of court orders. The Association rightly demands that all judicial decisions relating to pensioners must be implemented in rem, not restricted to individual litigants.
Failure to do so violates:
• Article 14 (Equality before law)
• Article 141 (Law declared by Supreme Court binding on all authorities):
Pensioners as Nation Builders — Not Free Labour
While pensioners possess vast institutional memory and expertise, engaging them free of cost under the guise of “nation building” is unacceptable. If pensioners are re-engaged, it must be:
• Voluntary
• Dignified
• Adequately compensated
Anything less would amount to exploitation of senior citizens.
Conclusion: Justice Delayed Is Justice Denied/ Destroyed:
The 8th Central Pay Commission is not merely a financial exercise—it is a constitutional responsibility. The Government must remember that pensioners are not a fiscal burden but contributors to nation-building who now deserve dignity, security, and fairness.
A fitment factor of not less than 3.0, comprehensive healthcare, tax relief, implementation of judicial rulings, and humane pension policies are not demands—they are constitutional imperatives.
Fix the fitment factor. Revise the pension. Deliver justice.
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ଚନ୍ଦ୍ରଭାଗା ତୀର୍ଥ ଓ ଅର୍କକ୍ଷେତ୍ରର ସେଇ ପବିତ୍ର ପ୍ରଭାତ…
When Destiny Folded Its Hands