Summary of this article
Fitment factor likely to be 1.60.
DA hike expected by March 2026.
Final decision depends on fiscal balance.
The talks of the 8th Pay Commission have long grabbed the attention of many in recent months as central government employees and pensioners await the next salary and pension revision. One of the biggest developments in the 8th Central Pay Commission is the emerging consensus that the minimum fitment factor will be 1.60. The update to the figure is just surface-level; the implications of this are deep and affect several people.
What Is a Fitment Factor?
The fitment factor is essentially a multiplier used to calculate the basic pay under which the new pay commissions are revised. It determines how much an employee’s basic salary increases by. In the previous Pay Commission, the government chose a fitment factor of 2.57. That means if the basic salary was Rs 7,000, it was raised to Rs 18,000 in the new pay structure. The pensions also increase on the same multiplier.
The fitment factor determines the take-home pay, pension amounts, and the overall financial benefit for employees and retirees alike.
DA Hike Expected By March
In a recent media report, a press release issued by the Labour Bureau stated that a 2 per cent Dearness Allowance (DA) hike for the January-June 2026 cycle has been confirmed. This takes the total DA hike under the 7th Central Pay Commission to 60.34 per cent.
Once it is approved by the Union Cabinet, most likely in March 2026, it will mark the first DA hike of the upcoming 8th Central Pay Commission, even if it is not formally issued.
Under the 7th Central Pay Commission, the DA has risen steadily over the past 10 years. With this expected 2 per cent hike, the total DA reaches 60 per cent of the basic pay. Simply put, if the salary of a central government employee’s basic pay was set at 100 originally, it will be 160 today, after accounting for the DA updates.
Clauses To Know About DA Hikes
Three DA instalments for 18 months were frozen during the COVID-19 pandemic. These hikes were never restored. If those were sanctioned, the DA level today would’ve been much higher.
Even if the 8th Central Pay Commission is assumed to take effect in January 2026, its recommendations will not be immediate. Historically, it always takes almost 2 years to be implemented. During the interim period, the DA rises as well.
What Is The Factors Before Digits Are Finalised
While DA plays the central role, it is not the only factor before the 8th Central Pay Commission. The panel also weighs in:
Fiscal position of the government
Wage parity across services
Employee demands and morale
Economic growth and inflation outlook
Hence, while 1.60 is the unavoidable digit, the final call will depend on a broader balancing act.
For central government employees, the real debate is no longer confined to the salaries, but how big the reform is going to be.
