How Much Salary Will Increase In 8th Pay Commission Big Update On DA Hike And Fitment Factor
8th Pay Commission: Significant news has emerged for Central and State government employees right at the beginning of the new year. This update is particularly relevant for those who have been eagerly awaiting changes in the salary structure and new rates of Dearness Allowance (DA). Typically, State governments follow the policies adopted by the Central government regarding salaries and allowances, making this news equally important for all government staff.
New DA Equation Effective from January 1, 2026
Under the recommendations of the 7th Pay Commission, the process of increasing Dearness Allowance (DA) for employees and Dearness Relief (DR) for pensioners continues. According to the latest data, a new DA hike is highly likely to be effective from January 1, 2026.
On December 31, the Ministry of Labour and Employment released the All India Consumer Price Index (AICPI). Based on this index, economic experts estimate that the DA might increase by 2%. If this hike is implemented, the total Dearness Allowance could reach 60%. Although the government usually announces this officially in March or April, employees need not worry. Regardless of when the announcement is made, they will receive the increased amount as arrears starting from January.
The Role of 8th Pay Commission and Fitment Factor
This particular DA hike carries special significance compared to previous ones because the 8th Pay Commission is expected to be introduced this year. As per the norm, whenever a new Pay Commission is constituted or implemented, the existing DA is merged with the Basic Pay, and the DA calculation restarts from zero in the new structure.
The extent of salary increase in this new structure largely depends on the ‘Fitment Factor’. Currently, there are discussions that the Fitment Factor in the 8th Pay Commission might be set at 2.15. If this factor is finalized, a substantial jump will be seen in the monthly salaries of government employees and the amounts received by pensioners.
Projected Salary Scenario
Calculating with a Fitment Factor of 2.15, the minimum salary of employees could rise from the current ₹18,000 to approximately ₹40,000. The potential changes in salary across various pay levels are illustrated in the table below:
| Level | Current Basic Pay (Approx) | Projected New Pay (2.15 Factor) | Projected Increase |
|---|---|---|---|
| Level 1 | ₹18,000 | ₹38,700 | ₹20,700 |
| Level 5 | ₹29,200 | ₹62,780 | ₹33,580 |
| Level 10 | ₹65,100 | ₹1,39,965 | ₹74,865 |
| Level 15 | ₹1,82,200 | ₹3,91,730 | ₹2,09,530 |
| Level 18 | ₹2,50,000 | ₹5,37,500 | ₹2,87,500 |
Note: The figures provided in the table above are estimates based on a Fitment Factor of 2.15. The actual salary structure will depend on the final recommendations of the 8th Pay Commission.
The coming days are going to be crucial for government employees. With the DA hike on one side and the recommendations of the new Pay Commission on the other, lakhs of employees are awaiting major changes in their salary structure.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Please consult with an expert or verify official government orders before making any decisions regarding salary or investments.
