8th Pay Commission: Employees DA May be Zero, Know the Full Report

The central government has approved the formation of the 8th Pay Commission, which will impact the salaries of millions of central employees and pensioners in the coming months. The government has also appointed the commission’s chairman and members. This commission will prepare recommendations regarding changes in the salary structure, fitment factor, and allowances. The government has directed the commission to submit its report within 18 months.

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Dearness Allowance (DA) may be zero

This time, the biggest change in the 8th Pay Commission is likely to be the Dearness Allowance (DA). According to reports, the commission’s recommendations include the possibility of merging DA with the basic salary. This means that DA will start from zero after the implementation of the new Pay Commission. Currently, central employees receive approximately 58% DA of their basic salary. Once the new rules are implemented, the existing DA will be added to the basic salary, and DA will be calculated from zero again.

However, the government will continue to increase DA twice a year. Currently, DA increases at an average rate of 7 to 8 percent every year.

When will the new Pay Commission be implemented?

The government has directed the 8th Pay Commission to submit its report within 18 months. This means that the Commission’s final report could be presented in early 2027. After the report is submitted, the central government will decide on implementing its recommendations. Experts believe that the new pay scales may be approved in 2027 itself.

What is the Fitment Factor?

The Fitment Factor is the multiplier used to multiply an employee’s basic salary under the old Pay Commission to arrive at the new basic salary. For example, the 7th Pay Commission set a fitment factor of 2.57. If an employee’s basic salary was ₹35,000, the new salary would be ₹35,000 × 2.57 = ₹89,950.

This factor is expected to be between 2.0 and 2.5 in the 8th Pay Commission. This could result in a significant increase in employees’ basic salaries.

How will salaries be determined?

To determine the new salary, the old basic pay is multiplied by the new fitment factor. For example, if an employee’s current basic salary is ₹35,000 and the new fitment factor is 2.11, the new basic salary would be ₹35,000 × 2.11 = ₹73,850.

In addition, allowances such as house rent allowance (HRA), transport allowance, and DA are added to this basic salary, further increasing the total salary.

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How much will salaries increase if the fitment factor remains 2.0?

If the government implements the new fitment factor 2.0, employees whose current basic salary is ₹50,000 will receive a new basic salary of ₹100,000. This will then include HRA and other allowances. Thus, the 8th Pay Commission is expected to significantly increase employees’ total income.

Currently, there are 18 pay levels for central government employees, and their salaries and allowances are determined based on these levels.