The All India Defence Employees Federation (AIDEF) has submitted fresh representations to the 8th Pay Commission outlining four major demands concerning the pay and pension structure of central government employees and pensioners. The federation, which represents civilian defence employees, sent a series of letters to the commission on September 21 and 22, 2026.
Among its key demands, AIDEF has called for a five-member family unit to be considered for minimum pay calculations, a minimum monthly pay of ₹69,000 and a 3.83 fitment factor. It has also sought restoration of the Old Pension Scheme (OPS), reduction of the commuted pension restoration period from 15 years to 11 years and changes to the 8th Pay Commission’s Terms of Reference to cover pensioners who retired before January 1, 2026.
AIDEF’s Five-Member Family Formula and ₹69,000 Minimum Pay
AIDEF has argued that the family unit used for determining minimum pay should include five members rather than three. The federation says the earlier calculation did not adequately account for employees who also have financial responsibilities towards dependent parents.
Based on its five-member family formula, AIDEF has proposed a 3.83 fitment factor and a minimum pay of ₹69,000 for central government employees. The calculation is linked to raising the existing minimum pay of ₹18,000 to around ₹69,000.
The federation has argued that household expenses have increased and that the financial responsibilities of employees can extend beyond their children to dependent parents. It has therefore presented the five-member family structure as the basis for its proposed minimum pay and fitment factor.
These figures are currently demands made by employee organisations and are not approved pay revisions. The 8th Pay Commission has yet to issue its final recommendations.
Demand to Restore OPS and Change Pension Commutation Period
AIDEF has also called for the return of the Old Pension Scheme for central government employees. It has argued that employees who joined government service on or after January 1, 2004, are covered by the National Pension System and that the retirement corpus under a market-linked system can depend on contributions, investment returns and economic conditions at the time of retirement.
The federation has therefore asked the 8th Pay Commission to recommend doing away with both the NPS and the Unified Pension Scheme (UPS) and restoring the OPS. This remains a demand submitted by the federation.
Another major request concerns pension commutation. Under the existing arrangement described by AIDEF, eligible central government employees can commute up to 40% of their pension at retirement in exchange for a lump-sum payment, with the commuted portion restored after 15 years.
AIDEF wants this restoration period reduced to 11 years. The federation has referred to a Himachal Pradesh High Court decision and argued that factors relevant to pension commutation, including interest rates, life expectancy, inflation, post-retirement expenses and broader economic conditions, have changed since the existing parameters were established.
AIDEF Seeks Coverage for Pre-2026 Pensioners
The federation has also asked for changes to the Terms of Reference of the 8th Pay Commission so that pension-related issues concerning employees who retired before January 1, 2026, are included.
According to AIDEF’s demand, the commission should examine pension revisions for past pensioners, family pension revisions, retirement benefits and parity between past and future pensioners. Similar requests concerning the inclusion of pre-2026 pensioners have also appeared in earlier AIDEF representations.
For now, the ₹69,000 minimum pay, 3.83 fitment factor, 11-year commutation period, OPS restoration and expanded pensioner coverage remain proposals placed before the 8th Pay Commission. The final position will depend on the commission’s recommendations and subsequent government decisions.
Disclaimer: This article is based on demands and representations submitted by the All India Defence Employees Federation. The figures and proposals mentioned are not final salary or pension revisions. Final recommendations and implementation decisions will be subject to the 8th Pay Commission and the government’s approval.