8th Pay Commission: Is the Fitment Factor Fixed at 1.60? DA Explains the Real Calculation

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8th Pay Commission: The conversation surrounding the 8th Pay Commission is increasingly gaining momentum among central government employees. The primary concern is what the fitment factor will be once the new pay structure is put into effect. Currently, the latest dearness allowance (DA) data is providing a strong foundation for this inquiry.

The government has not yet officially announced the 8th Pay Commission or given a timeline for its rollout. Nevertheless, the current DA data clearly suggests that the fitment factor will not fall below 1.60. Additionally, it is anticipated that the final number could be significantly higher.

60% DA has established the minimum base

The main reason for this discussion is the recent inflation data. As reported by the Labor Bureau, the All India CPI-IW index for December 2025 stood at 148.2 points. Based on this, a 2% DA increase is anticipated for the period from January to June 2026.

Following this increase, the total DA under the 7th Pay Commission will rise to 60.34%. For payment purposes, this will be rounded to 60%. The Union Cabinet is expected to give its approval in March 2026.

Although the 8th Pay Commission has not officially commenced, this increase in DA is being viewed as the first DA hike in the potential 8th Pay Commission cycle.

Direct link between fitment factor and DA

At the start of each Pay Commission, the existing basic salary is considered as 1. DA is then added to this basic salary to counteract the effects of inflation. Throughout the 7th Pay Commission, the DA has consistently increased over the last decade. Now, the DA has reached 60%. In simple terms, if an employee’s basic salary was Rs 100 at the start of the 7th Pay Commission, it has now risen to Rs 160 after including DA.

This calculation clearly indicates that the minimum fitment factor for the 8th Pay Commission should be 1.60. A lower factor would imply that inflation over the past few years has not been adequately addressed.

Why 1.60 is merely the starting point, not the ultimate figure?

1.60 represents the mathematical minimum threshold, yet there are numerous reasons why the final fitment factor could exceed this.

DA installments were halted during Covid

During the COVID-19 pandemic, the government paused three DA increments for 18 months in 2020-21. These increments were not later restored to employees.

Had this DA been disbursed on schedule, the current DA would have surpassed 60%. This is why employee organizations and experts are vocally advocating for a higher fitment factor.

DA will rise further due to the delay in the 8th Pay Commission

Even if the 8th Pay Commission is deemed effective from January 2026, its recommendations are unlikely to be enacted right away. Historical experience with previous pay commissions indicates that it typically takes around two years for the report to be finalized and put into action. During this interim, DA increments will continue.

DA could potentially increase at least four more times before the implementation in January 2026. In this context, DA is expected to reach between 80% and 90%. Consequently, the fitment factor might approach 1.8 or 1.9, and even a figure of 2 is not out of the question.

What the previous pay commissions reveal?

6th Pay Commission

Fitment Factor: 1.92

Minimum Basic Salary: Rs 3,200 to Rs 7,440

Maximum Basic Salary: Rs 30,000 to Rs 90,000

This was not merely an increase, but a significant overhaul of the entire salary framework.

7th Pay Commission

Fitment Factor: 2.57

Minimum Basic Salary: Rs 7,440 to Rs 18,000

Maximum Basic Salary: Rs 90,000 to Rs 2.5 lakh

The 7th Pay Commission provided the largest salary increase to date, which has raised expectations for the 8th even higher.

Ultimately, on what grounds will the fitment factor be determined?

Dearness Allowance (DA) plays a crucial role in the fitment, but it is not the only factor at play. The 8th Pay Commission will evaluate the government’s financial health and consider the potential impact on the treasury. Ensuring pay equity across various services will also be a significant consideration.

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