8th Pay Commission Fitment Factor: The calculation of dearness allowance (DA) for central government employees is decided on the basis of fitment factor. Experts believe that the 8th Pay Commission can recommend a fitment factor between 2.28 to 2.86, which can increase the basic salary of employees by 40-50 percent.
8th Pay Commission Update: There is good news for central employees who were waiting for a long time for an increase in Dearness Allowance. Recently, the central government has approved a 2% increase in Dearness Allowance (DA) for its existing employees. This will increase the DA of central government employees from the current 53% to 55% of their basic salary. DA is revised every 6 months, and due to this, other salary components like HRA (House Rent Allowance) and TA (Travel Allowance) also increase.
Arrears will be given along with the salary of March month
Central government employees will get this increased DA for the months of January and February 2025 as arrears along with the salary of the month of March. Let us tell you that before this the last increase was in July 2024, when DA was increased from 50% to 53%.
The increase in DA disappointed the employees
This time the increase is the lowest in the last 7 years. If we look at the old data, since July 2018, the government has been increasing the rate by at least 3 to 4 percent every time, but this time the increase has been only 2 percent.
How much benefit do employees and pensioners get?
Suppose if the basic salary of the employee is Rs 18,000, then an increase of 2% will result in an increase of Rs 360 per month, i.e. an additional benefit of Rs 4,320 will be available in a year. Similarly, if the basic pension is Rs 9,000, then there will be an increase of Rs 180 every month, which will give the pensioner an annual benefit of Rs 2,160.
First DA hike after the announcement of 8th Pay Commission
This is the first increase in DA after the announcement of the 8th Pay Commission. Let us tell you that the government had announced the formation of the 8th Pay Commission in January this year, which will come into effect from January 1, 2026. That is, it may take at least a year for the new recommendations to be implemented, which means that the next increase in DA (for July-December 2025) around November this year will be the last under the 7th Pay Commission.
DA is a very important component of salary as it helps in reducing the impact of inflation on the gross income of an employee.
Will DA be merged into basic salary from next year?
Let us tell you that the 5th Pay Commission merged DA with the basic salary if it was more than 50%, a practice which was discontinued in subsequent commissions. Therefore, many people have this question in their mind whether the basic salary will be merged with DA before the 8th Pay Commission comes.
However, it would be premature to say anything at this time, as there has been no official confirmation about merging dearness allowance with basic salary under the 8th Pay Commission. However, the 6th Pay Commission had recommended against merging dearness allowance with basic salary and this was also considered in the 7th Pay Commission. It is worth noting that many employee organizations including the National Council of Joint Consultative Machinery are demanding to merge dearness allowance with basic salary.
The government has recently clarified in a written reply in the Rajya Sabha through the Minister of State for Finance that at present they have no plans to merge dearness allowance with basic pay. Minister of State for Finance Pankaj Chaudhary clarified in the Rajya Sabha on March 18, 2025 that the government will not merge 50% DA in the basic salary of central employees even as an interim relief before the preparation and adoption of the report of the 8th Central Pay Commission.
How will DA be calculated under 8th Pay Commission?
The calculation of dearness allowance (DA) for central government employees is decided on the basis of fitment factor. Since the approval of the 8th Pay Commission, there has been a discussion on the fitment factor everywhere. Experts believe that the 8th Pay Commission may recommend a fitment factor between 2.28 and 2.86, which can increase the basic salary of employees by 40-50 percent.
What is the fitment factor?
The fitment factor is a formula that the government uses to decide the salary of employees while implementing the pay commission. Its purpose is to update the salary keeping in mind inflation and the allowances already being received (such as DA – Dearness Allowance). In the 7th Pay Commission, this fitment factor was 2.57. That means, if someone’s basic salary was Rs 30,000, then after applying the fitment factor on it, the total salary became around Rs 77,100.
How much will the salary increase with the 8th Pay Commission?
Regarding the 8th Pay Commission, it is being said that the fitment factor can be increased to 2.83. If this happens and someone’s basic salary is Rs 50,000, then after applying the new fitment factor, his salary can reach around Rs 1,41,500.
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