8th Pay Commission: Rising DA Signals Strong Fitment Factor Boost for Central Govt Employees
Recent Dearness Allowance data has given central government employees and pensioners their first strong indication of what the fitment factor under the upcoming 8th Pay Commission could look like. With DA now touching 60 percent under the 7th Pay Commission structure, early calculations suggest that the new fitment factor is unlikely to be below 1.60.
New Delhi, February 24: Recent Dearness Allowance data has given central government employees and pensioners their first strong indication of what the fitment factor under the upcoming 8th Pay Commission could look like. With DA now touching 60 percent under the 7th Pay Commission structure, early calculations suggest that the new fitment factor is unlikely to be below 1.60.
Although the Centre has not formally announced the constitution or timeline of the 8th Pay Commission, inflation trends and DA growth are already shaping salary revision expectations across departments. 8th Pay Commission: Will Central Government Employees Get a 30% Salary Hike in 2026?
DA at 60% Sets the Mathematical Benchmark
Dearness Allowance, which compensates employees for inflation, has steadily increased in line with the All India Consumer Price Index for Industrial Workers data released by the Labour Bureau. The CPI IW stood at 148.2 in December 2025, paving the way for an additional 2 percent DA hike for the January to June 2026 period. 8th Pay Commission Salary Hike: Could Minimum Basic Pay Rise to INR 58,500? Latest Details Here.
This takes cumulative DA to around 60.34 percent, which is likely to be rounded off to 60 percent for payment purposes.
Under the standard pay commission formula, the fitment factor works as a multiplier on existing basic pay to determine revised salaries. For example, if the base pay is indexed at 100, adding 60 percent DA effectively raises it to 160. This directly translates into a fitment factor of 1.60, establishing what experts call the minimum logical floor for the 8th Pay Commission.
Why Fitment Factor Could Be Higher Than 1.60
While 1.60 appears to be the minimum benchmark, several factors could push the final fitment factor significantly higher.
During the Covid 19 period, three DA instalments were frozen for nearly 18 months and were not restored later. Analysts argue that if those hikes had been implemented on schedule, current DA levels would likely be well above 60 percent today. This strengthens employee demands for a higher multiplier.
Additionally, even if the 8th Pay Commission is assumed to take effect from January 1, 2026, past experience shows that final recommendations and implementation can take two years or more. During this period, further DA hikes driven by inflation could push cumulative DA into the 80 to 90 percent range.
If that scenario unfolds, experts suggest that a fitment factor of 1.8 or even 1.9 may become more realistic when the final pay structure is approved.
Impact on Salary, Pension, and Allowances
The fitment factor is crucial because it directly determines revised basic pay. This, in turn, affects pension calculations, House Rent Allowance, Transport Allowance, and overall monthly take home salary.
For pensioners, the multiplier will play a key role in revising retirement benefits. For serving employees, it will influence long term financial planning and career progression benefits linked to pay scales.
Employee unions are actively advocating for a higher fitment factor, arguing that salary revisions must reflect cumulative inflation and compensate for missed DA hikes during the pandemic period.
What Central Government Employees Should Expect
At present, the 1.60 fitment factor appears to be the minimum logical base under current DA levels. However, if inflation continues and DA rises further before implementation, the final figure could be significantly higher.
As discussions around the 8th Pay Commission gain momentum, central government employees and pensioners will be closely tracking DA announcements, CPI IW data, and government signals on the new pay panel’s formation.
For now, DA crossing 60 percent has clearly set the stage for a major salary restructuring cycle ahead.
(The above story first appeared on LatestLY on Feb 24, 2026 01:59 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).