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The Economic Times
The Economic Times
Sneha Kulkarni

8th Pay Commission latest news: Railway pensioners' body demands one rank one pension, inflation-linked pension revision

The Railway Senior Citizens Welfare Society (RSCWS), a body of retired Railway employees, has submitted its recommendations to the 8th Pay Commission covering pay structure, fitment factor, allowances, welfare measures, performance incentives and retirement benefits.

The association has argued that rising living costs, changes in salary structures and concerns over pension parity make it necessary to revisit several aspects of the existing pay structure under the 7th Pay Commission. Here are some of the key demands raised by the Railway pensioner body for consideration under the 8th Pay Commission.

Railway pensioner body’s demands related to basic pay and annual increment

The Railway Senior Citizens Welfare Society (RSCWS) has recommended the 8th Pay Commission to focus on strengthening basic pay since it directly impacts pension, gratuity and other retirement benefits. The pensioner body has also sought a revision of minimum pay based on inflation levels as on January 1, 2026, and has proposed raising the annual increment rate from 3% to 5%.

The Railway pensioner body has also asked for anomalies in the pay matrix and pay compression across levels to be addressed. It believes that the fitment factor should result in a meaningful increase in income and that any salary revision should be accompanied by a corresponding revision in pensions.

Railway pensioner body’s suggestions related to allowances

The RSCWS has pointed out that persistent inflation has reduced the purchasing power of both employees and pensioners over the years. It has said that the current salary structure places greater emphasis on allowances and dearness allowance (DA) instead of strengthening basic pay.

The pensioner body has highlighted the gap that often emerges between older and newer pensioners saying that pension revisions do not always fully reflect salary revisions granted to serving employees. It has also raised concerns about the growing difference in compensation between government and private sector employees.

RSCWS’ demands for welfare benefits

The pensioner body has called for simpler leave approval procedures and a review of ceiling on leave accumulation, saying it will help employees receive appropriate compensation for unutilised leave earned through service. The RSCWS has also sought higher insurance coverage and greater transparency under the Central Government Employees Group Insurance Scheme (CGEGIS).

It has urged the government to expand the network of reputed empanelled hospitals, ensure the availability of medicines and simplify reimbursement procedures. It has also suggested that empanelment of private hospitals should be handled centrally by the Ministry of Health instead of individual departments. The RSCWS has further advocated a wider shift towards cashless treatment.

For General Provident Fund (GPF), it has sought competitive interest rates along with improved digital access and transparency. It has also recommended simpler Leave Travel Concession (LTC) rules and higher reimbursement limits.

Pensioner body’s recommendations for performance incentives

The Railway pensioner body has maintained that performance incentives should remain an additional benefit and should not replace the existing pay structure. It has said that performance assessment should be transparent and objective, and that incentives should reward team performance as well as individual contributions. The RSCWS has also stressed that such incentives should not affect pension calculations or be used in place of regular pay revisions. The existing bonus system, it said, should continue with periodic revisions.

RSCWS’ demands for retirement benefits

The RSCWS has called for below revisions as far as retirement benefits are concerned-

Gratuity (DCRG): The pensioner body said that the ceiling of gratuity should be reviewed periodically in line with the rising cost of living.

Pension systems: RSCWS has also said that there is a need for stronger safeguards to ensure predictable and adequate pension benefits after retirement.

One rank, one pension-like principle: The pensioner body has recommended extending the concept of parity to civilian pensioners so that retirees with the same rank and service length receive comparable pensions.

Leave encashment: The existing ceiling should be periodically reviewed and revised in line with inflation and pay revisions so that retirees receive fair compensation for unutilised leave, as per the Railway pensioner body.

Pension commutation: The pensioner body has demanded that a review pension commutation restoration period may be considered (reduced) so that pensioners regain their full pension earlier. It has asked to reduce the restoration period from 15 years to 10–12 years.

Timely settlement: As per the Railway pensioner body, a proper system should be in place to ensure that all dues such as the payment of pension, gratuity, and retirement due are finalised and disbursed promptly.

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