8th Pay Commission: Discussions around the 8th Pay Commission have gained momentum among central government employees. The biggest concern continues to be the fitment factor under the new pay structure. Although the government has not officially announced the 8th Pay Commission or shared a timeline, recent Dearness Allowance (DA) figures are offering strong indications about what may lie ahead.

Based on current inflation trends, it is becoming clear that the fitment factor under the 8th Pay Commission may not be lower than 1.60, and expectations are rising that the final figure could be even higher.

8th Pay Commission: 60% DA Sets the Minimum Benchmark for Fitment Factor

The latest inflation data has become the foundation of the 8th Pay Commission debate. According to the Labour Bureau, the All India CPI-IW index for December 2025 stood at 148.2 points. This supports a likely 2% DA hike for January–June 2026.

After this increase, total DA under the 7th Pay Commission will reach 60.34%, which is expected to be rounded off to 60% for payout purposes. The Union Cabinet is likely to approve this hike in March 2026.

Even though the 8th Pay Commission has not been formally notified, this DA rise is being viewed as the starting point for the upcoming pay commission cycle.

8th Pay Commission: How Dearness Allowance Shapes the Fitment Factor

At the beginning of every pay commission, the existing basic salary is taken as the base value of 1, and DA is added over time to protect employees from inflation. During the nearly ten-year period of the 7th Pay Commission, DA has increased steadily and now stands at 60%.

Put simply, if an employee’s basic pay was 100 at the start of the 7th Pay Commission, it has effectively grown to 160 after adding DA. This calculation clearly shows why the minimum fitment factor under the 8th Pay Commission must be 1.60. Anything lower would mean inflation over the years has not been fully compensated.

8th Pay Commission: Why 1.60 Is Only the Starting Point

While 1.60 is the minimum mathematical requirement, several factors indicate that the final fitment factor under the 8th Pay Commission could be higher.

8th Pay Commission: Frozen DA During COVID Strengthens Employee Demands

During the COVID-19 period in 2020–21, the government froze three DA hikes for 18 months. These increments were never released later.

Had these DA hikes been paid on time, the current DA level would have been well above 60%. This is why employee unions and experts are strongly arguing for a higher fitment factor in the 8th Pay Commission.

8th Pay Commission: Delay Could Push DA Levels to 80–90%

Even if the 8th Pay Commission is assumed to take effect from January 2026, past experience shows that recommendations usually take around two years to be implemented.

During this period, DA continues to rise. From January 2026 onward, at least four additional DA hikes are expected. This could push DA levels to 80–90%, making a fitment factor of 1.8 or 1.9 more realistic. Reaching 2.0 may also be possible.

8th Pay Commission: What Past Pay Commissions Suggest

8th Pay Commission Context from the 6th Pay Commission

  • Fitment factor: 1.92

  • Minimum basic pay: ₹3,200 to ₹7,440

  • Maximum basic pay: ₹30,000 to ₹90,000

This commission brought a major overhaul of the salary structure.

8th Pay Commission Expectations Based on the 7th Pay Commission

  • Fitment factor: 2.57

  • Minimum basic pay: ₹7,440 to ₹18,000

  • Maximum basic pay: ₹90,000 to ₹2.5 lakh

The 7th Pay Commission delivered the biggest salary hike so far, raising expectations for the 8th Pay Commission.

8th Pay Commission: Key Factors That Will Decide the Final Fitment Factor

While DA is a crucial component, it will not be the sole deciding factor for the 8th Pay Commission. The government will also assess its financial position and the overall burden on the exchequer.

Maintaining salary balance across different services, addressing employee morale, tracking economic growth, and considering future inflation trends will all play a role. The final fitment factor will be determined after evaluating all these aspects together.