8th Pay Commission: AIDEF Demands Rs 69,000 Minimum Pay, 3.83 Fitment Factor and 11-Year Pension Commutation Period

AIDEF Submits Fresh Demands to 8th Pay Commission

The All India Defence Employees' Federation (AIDEF), which represents defence civilian employees, has submitted fresh justifications to the 8th Pay Commission on salary and pension-related issues.

In letters sent on September 21 and 22, 2026, the federation outlined several demands concerning pay calculation, pension, pension commutation and the scope of the 8th Pay Commission.

The proposals are demands made by AIDEF and have not been approved by the government or the 8th Pay Commission.

Rs 69,000 Minimum Pay and 3.83 Fitment Factor

AIDEF has recommended that the minimum basic pay for central government employees should be increased to Rs 69,000 under the 8th Pay Commission.

It has also sought a 3.83 fitment factor for calculating revised salaries.

According to AIDEF, these figures are linked to its proposal to use five family units for determining minimum pay requirements, rather than the three family units used for the 7th Pay Commission's calculations.

Why AIDEF Wants Five Family Units

AIDEF has argued that the existing calculation does not adequately account for employees who may have financial responsibility for their parents in addition to their spouse and children.

Its proposed family-unit calculation is:

Family MemberExisting 7th CPC UnitsProposed 8th CPC UnitsEmployee11Spouse0.81Two children1.21.6Dependent father—0.8Dependent mother—0.8Total35.2 (rounded to 5)

AIDEF says the higher family requirement should be reflected in the minimum pay and fitment factor.

Demand to Restore Old Pension Scheme

AIDEF has also demanded the abolition of the National Pension System (NPS) and Unified Pension Scheme (UPS) and the restoration of the Old Pension Scheme (OPS) for central government employees.

The federation has argued that NPS retirement outcomes depend on factors including employee and employer contributions, investment returns and economic conditions at the time of retirement.

This is a demand from the employee federation and is not an announcement that the government has decided to restore OPS.

Pension Commutation Period: AIDEF Seeks 11 Years

Another major demand concerns the restoration period for commuted pension.

Under the existing framework applicable to eligible central government pensioners, a person can commute up to 40% of their pension and receive a lump-sum amount. The commuted portion is subsequently restored after the prescribed period of 15 years.

AIDEF has demanded that the restoration period be reduced from 15 years to 11 years.

Why 11 Years?

AIDEF has referred to changes in several factors that influence pension commutation, including:

• Commutation factors

• Interest rates

• Life expectancy

• Inflation

• Post-retirement expenses

• Broader economic conditions

The federation has argued that these changed circumstances justify reviewing the existing 15-year restoration period. It has also referred to observations in a Himachal Pradesh High Court case concerning pension commutation parameters.

A separate pensioners' organisation, Bharat Pensioners' Samaj, has also recently sought an 11-year restoration period and called for an actuarial review following the Himachal Pradesh High Court's September 16, 2026 judgment.

AIDEF Wants Past Pensioners Included

AIDEF has also requested changes to the Terms of Reference (ToR) of the 8th Pay Commission so that pension-related issues concerning employees who retired before January 1, 2026 are included.

The federation has sought consideration of:

• Revision of pensions of past pensioners

• Revision of family pensions

• Parity between past and future pensioners

• Review of retirement benefits

According to AIDEF, these matters should form part of the 8th CPC's consideration.

8th Pay Commission Has Not Finalised These Demands

The 8th Pay Commission is currently consulting employees, pensioners and other stakeholders before preparing its recommendations on pay, pensions, allowances and related issues.

Therefore, the Rs 69,000 minimum pay, 3.83 fitment factor and 11-year pension restoration period are proposals made by AIDEF, not confirmed benefits for central government employees and pensioners.

Key Takeaway

AIDEF has put forward a set of significant proposals for the 8th Pay Commission. Its key demands include a Rs 69,000 minimum basic pay, 3.83 fitment factor, five family units for pay calculations, restoration of OPS, an 11-year pension commutation restoration period and inclusion of past pensioners' issues in the 8th CPC's Terms of Reference.

The final recommendations will depend on the 8th Pay Commission's consultation process and subsequent government decisions.