8th Pay Commission: A 2% increase in DA is expected for the period from January to June 2026. After this increase, the total DA under the 7th Pay Commission will reach 60.34%. The 7th Pay Commission was implemented on January 1, 2016.
Add informalnewz.com as a Preferred Source
8th Pay Commission: The 8th Central Pay Commission (CPC) has launched its official website and sought feedback from stakeholders. This means that the Pay Commission has begun its work. While it may take a few more months to submit its recommendations, central government employees and pensioners want the recommendations implemented quickly. This is a request being made to the government. Upon implementation of the 8th Central Pay Commission, the salaries of central government employees and pensioners will increase.
It is not yet certain whether the 8th CPC will replicate the 7th Pay Commission’s fitment factor-based method for determining revised salaries. However, if the 8th CPC follows the same formula, a 60% dearness allowance could serve as the basis for calculating the fitment factor.
According to the Labor Bureau, the All India CPI-IW Index for December 2025 was 148.2 points. Based on this, a 2% increase in DA is expected for the period from January to June 2026. After this increase, the total DA under the 7th Pay Commission will reach 60.34%. The Union Cabinet is expected to approve the DA hike in March 2026. The 7th Pay Commission established January 1, 2016, as the base for calculating DA rate fitment.
What was the fitment factor under the 7th CPC?
The 7th CPC was implemented from January 1, 2016. While determining the fitment factor, it was assumed that the DA rate on January 1, 2016, would be 125% of the basic salary. If this approach continues in the 8th CPC, 60% DA could become the basis for calculating the new fitment factor. The 7th CPC fixed the starting point for the first level of the new pay matrix at ₹18,000. Whereas, under the 6th CPC, the starting salary point for the pay band effective from 01.01.2006 was ₹7,000.
Thus, the starting salary point proposed by the 7th CPC was 2.57 times higher than the rate applicable on 01.01.2006. Further, the 7th CPC had recommended applying this fitment factor of 2.57 uniformly to all employees.
What could the fitment factor be?
If an employee’s basic salary was 100 at the beginning of the 7th Pay Commission, then today, after adding the DA increases over the last 10 years, the salary would be 160. This calculation clearly shows that the minimum fitment factor in the 8th Pay Commission should be 1.60. However, there are several reasons why the final fitment factor could be higher. One reason is that during the COVID-19 pandemic, in 2020-21, the government withheld three DA increases for 18 months. These increases were not subsequently returned to employees. Had these DA hikes been received on time, the DA today would have been much higher than 60%. This is why employee organizations and experts are strongly demanding a higher fitment factor.
Furthermore, even assuming the 8th Pay Commission is effective from January 2026, its recommendations are still difficult to implement immediately. Experience with previous pay commissions shows that it takes about two years for the report to be prepared and implemented. In two years, DA can increase at least four times.
What other factors will determine the fitment factor?
Dearness Allowance (DA) is a key factor in determining the fitment factor, but it is not the sole determinant. The 8th Pay Commission will also consider the government’s financial situation and assess the potential burden on the treasury. Maintaining pay balance across different services will also be a key factor. Employee demands and morale will also not be ignored. The country’s economic growth and future inflation trends will also play a key role. The final fitment factor will be determined only after considering all these factors.
