8th Pay Commission: There is good news for central employees as there is a possibility of a significant increase in salary under the 8th Pay Commission. Discussions have intensified among the employees regarding salary revision since the announcement of the formation of the commission in January 2025. Especially all eyes are on the merger of fitment factor and dearness allowance (DA).
What is Fitment Factor?
The fitment factor is a multiplier used to convert the basic salary of the employees into the new pay scale. Its purpose is to ensure that the salary hike is applicable equally at all levels. Along with this, the effect of inflation and allowances is also included in it so that the employees can get real benefits.
History of DA Merge in Previous Pay Commissions
Changes have been seen in the way DA is merged into the basic salary during the previous pay commissions.
| Pay Commission | Percentage of DA merge | Applicable Fitment Factor |
|---|---|---|
| 5th commission | 74% | 1.86 |
| 6th Commission | 115% | 1.86 + Grade Pay |
| 7th Commission | 125% | 2.57 |
For example, before the implementation of 7th Pay Commission in January 2016, employees were getting 125% DA on their basic pay. Based on this, a fitment factor of 2.57 was determined.
Example: If an employee’s basic pay was ₹10,000, then the total pay with 125% DA was ₹22,500. After the actual increase of 14.22%, the new pay became ₹25,700, making the fitment factor 2.57.
Possible changes in the 8th Pay Commission
Currently, employees are getting more than 50% DA and by 2025 this figure can reach around 70%. In such a situation, it is likely that the new pay commission will also merge DA into the basic salary and apply a new fitment factor on it.
According to sources:
The new fitment factor can be 3.0 or more.
This can benefit the employees with a huge increase in their salary.
Will the employees who retire before January 1, 2026 be deprived of the benefit?
The question often arises whether those employees who will retire before the implementation of the new pay commission will also get its benefit?
Usually the government gives retroactive effect in such cases, that is, the new pay scale is applicable from the previous date.
However, the final decision will depend on the official notification of the government.
What changes will this bring for the employees?
Big increase in salary: The implementation of the new fitment factor can lead to a significant increase in the salary of the employees.
Benefits of DA Merger: Merging Dearness Allowance (DA) into Basic Pay will maintain balance in the pay structure.
Improvement in Retirement Benefits: It will also have a positive impact on pension and other retirement benefits.
