Lakhs of central government employees and pensioners are waiting eagerly for the 8th Pay Commission. If all goes as expected, it may come into effect from 1 January 2026. But there is already a lot of talk among employees about how much their salary will rise this time and how the calculation will be done. Two key terms are being discussed – Fitment Factor and DA Merger.
Let us understand what these terms mean and how your salary will be calculated.
What is the Fitment Factor and Why It Matters in Salary Hike
The fitment factor is a multiplication number used to fix new basic pay in a new pay commission. When the 7th Pay Commission came, a fitment factor of 2.57 was used. It means the existing basic salary was multiplied by 2.57 to get the new basic.
This time too, a new fitment factor will be fixed for the 8th Pay Commission. The higher the fitment factor, the more your salary will increase. For example, if your current basic pay is Rs. 18,000 and the fitment factor becomes 3.0, your new basic salary will be Rs. 18,000 x 3.0 = Rs. 54,000.
The fitment factor includes two things – the total Dearness Allowance (DA) given till the time of implementation and an additional increase in real salary.
How DA Merger Will Impact the New Basic Salary
Whenever a new Pay Commission is introduced, the Dearness Allowance (DA) being paid at that time is merged into the new basic salary. This is done so that the new salary structure already includes inflation adjustment.
In the 7th Pay Commission, when it was implemented on 1 January 2016, the total DA at that time was 125%. This was merged into the salary, and then the fitment factor of 2.57 was applied.
For the 8th Pay Commission, the expected DA by 1 January 2026 is around 60%. So it is likely that this 60% DA will also be added into the new basic salary through the fitment factor.
Employees Want Higher Fitment Factor Than Before
Central government employees and unions are demanding a fitment factor of 3.68 this time. This is much higher than the 2.57 of the 7th Pay Commission. The final decision will be taken by the Pay Commission panel and the government, but experts believe it may be fixed around 2.8 to 3.0.
If 3.0 is approved, it would mean a 66% rise in basic salary compared to the 7th Pay Commission structure.
Example Calculation: How Much Can You Get After 8th Pay Commission?
Let’s take a practical example to understand:
- Your current basic salary: Rs. 18,000 (7th CPC, Level 1)
- If the new fitment factor = 3.0
Then: Rs. 18,000 × 3.0 = Rs. 54,000 (new basic)
This Rs. 54,000 will become your new basic pay from 1 January 2026. Over this amount, DA, HRA, and other allowances will be added separately.
So, total in-hand salary will increase more than just the basic rise.
Avoid Misleading Calculations Seen on Social Media
Many unofficial calculations on YouTube or social platforms are saying things like:
- Basic + DA = subtotal, then increase by 18%
- Or, reverse calculating fitment factor using expected salary
These are wrong ways to estimate salary hike. In reality, the government first finalises the fitment factor, and then it is used to calculate the new basic pay. The fitment factor itself includes merged DA and salary rise, so double counting should not be done.
If someone says the new fitment factor is 1.90, it clearly does not match the past pattern. Even the 6th to 7th CPC jump was 2.57, so going backward is not logical.
What Happened in Past Pay Commissions?
Let’s quickly look at the past Pay Commissions and their fitment factors:
- 5th to 6th CPC: Around 1.86 was used
- 6th to 7th CPC: 2.57 was used
- Expected in 8th CPC: Between 2.8 to 3.68 (not final yet)
This pattern shows that with each Pay Commission, the fitment factor has increased. So chances of getting at least 2.8 or more are quite high.
Salary Structure After 8th Pay Commission
After the new basic pay is fixed, your full salary will include:
- New Basic Pay (with fitment factor applied)
- New DA (starts again from 0% post-implementation)
- HRA (usually 24%, 16%, or 8% depending on city category)
- Transport Allowance
- Other allowances depending on the job role and department
Let’s take another example:
- Suppose current basic: Rs. 25,500
- New fitment factor = 3.0
- New Basic = Rs. 25,500 x 3.0 = Rs. 76,500
- Add DA (say 0% initially), HRA = Rs. 18,360 (24%), TPT = Rs. 3,600
Total salary = Rs. 76,500 + Rs. 18,360 + Rs. 3,600 = Rs. 98,460
This is a simple example. Actual figures will differ based on final rules.
When Will the 8th Pay Commission Be Implemented?
Though the government has not made any official announcement yet, sources suggest that a committee is being formed. If it follows the normal 10-year cycle, the 8th Pay Commission may come into effect from 1 January 2026.
The process generally includes:
- Formation of a Pay Commission panel
- Recommendations after studying existing pay structure
- Review by the government
- Final implementation through Cabinet approval
What Should Employees Do Now?
Central government employees should avoid speculations and wait for official updates. While demands for a higher fitment factor and DA merger are already raised, final figures will be available only after the Pay Commission submits its report.
Still, employees can plan finances assuming a possible 2.8 to 3.0 fitment factor, and an overall salary hike between 40% to 60% in basic pay.
Source: Zee Business
