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The implementation of the 8th Central Pay Commission is one of the most anticipated developments for central government employees and pensioners in India. With Dearness Allowance (DA) expected to cross 60% in early 2026, discussions have intensified around a key question: Will 60% DA become the base for calculating the new fitment factor?

The answer is not yet official, but trends and past practices offer important clues.

8th Central Pay Commission Begins Work

The 8th Central Pay Commission has officially launched its website and invited feedback from stakeholders, signaling the formal start of its review process. While it may take several months before recommendations are finalized, employees and pensioners are urging the government for swift implementation.

Once implemented, the 8th Pay Commission is expected to revise basic salaries, allowances, and pensions for millions of central government employees.

However, a crucial element in this revision will be the fitment factor, which determines how much the existing basic pay will be multiplied to arrive at the new salary.

Why 60% DA Is in Focus

According to data from the Labour Bureau, the All India CPI-IW (Consumer Price Index for Industrial Workers) for December 2025 stood at 148.2 points. Based on this, a 2% increase in DA for January–June 2026 is widely expected.

If approved, the total DA under the 7th Central Pay Commission will rise to approximately 60.34%.

The Union Cabinet is likely to approve this DA hike in March 2026.

The reason 60% is significant lies in precedent. When the 7th Pay Commission was implemented on January 1, 2016, the existing DA (125% at that time) was factored into the pay revision formula. If the same methodology is followed again, the 60% DA could form the foundation for calculating the new fitment factor.

What Happened Under the 7th Pay Commission?

The 7th CPC introduced a uniform fitment factor of 2.57 for all employees. This meant:

• The minimum basic salary increased from ₹7,000 (under the 6th CPC in 2006)

• To ₹18,000 under the 7th CPC

This was a 2.57 times increase over the earlier base.

The pay matrix introduced in 2016 ensured structured increments across levels. Importantly, the DA rate at that time played a major role in determining the multiplication formula.

What Could Be the Minimum Fitment Factor in 8th CPC?

Let’s consider a simple example.

If an employee’s basic salary was 100 at the start of the 7th CPC in 2016, after nearly 10 years of DA increases, that effective amount now equals around 160 due to cumulative DA growth.

This implies that 1.60 could be the minimum logical starting point for the next fitment factor calculation.

However, several factors suggest it could be higher:

1. DA Freeze During COVID-19

During 2020–2021, the government froze three DA installments for 18 months amid the pandemic. These increases were never restored retroactively. Employee unions argue that if those hikes had been granted on time, the DA would have been well above 60% today.

2. Delay in Implementation

Even if the 8th CPC is considered effective from January 2026, history shows that actual implementation may take up to two years. During that period, DA could rise at least four more times, pushing the effective base higher.

3. Inflation and Cost of Living

Sustained inflation trends and rising living costs will influence final recommendations.

Factors That Will Decide the Final Fitment Formula

While DA is an important component, it is not the sole deciding factor. The 8th CPC will also examine:

• The government’s fiscal capacity

• Overall economic growth trends

• Inflation projections

• Pay parity across services

• Employee morale and retention

• Pension sustainability

The final fitment factor will be determined after balancing these economic and administrative considerations.

What Employees Can Expect

Though no official figure has been declared yet, experts believe the fitment factor could exceed 1.60 depending on financial feasibility and policy priorities.

If the Commission follows the earlier formula-based model, 60% DA may indeed act as a reference base. However, the final multiplier will depend on broader economic realities.

For now, central government employees and pensioners will have to wait for formal recommendations from the 8th Central Pay Commission.