8th Pay Commission may reset DA after merger, with Dearness Allowance projected to reach 60% before 2026 implementation.

Latest update on 8th Pay Commission and expected DA changes, merger speculation, fitment factor impact, and salary revision outlook.
8th Pay Commission Latest Update: The central government employees and pensioners eagerly await the 8th Pay Commission as their most significant upcoming development. The government has not yet announced the precise implementation date, but reports indicate that the recommendations will start on January 1, 2026. The commission will examine salary structures, pensions, allowances, and service conditions, just like previous pay commissions.
The central government provides Dearness Allowance (DA) as a cost-of-living adjustment to its employees and pensioners because of inflation. The All India Consumer Price Index (AICPI) serves as the basis for its biannual updates, which occur in January and July.
The ongoing inflation has caused DA to increase consistently throughout the current period. The DA will reach approximately 60% of basic pay by early 2026, depending on future inflation rates. The 8th Pay Commission recommendations will result in DA being reset to zero because it will combine with the new basic pay system.
The employee unions believe that the government will implement a DA merger with basic pay before calculating the new fitment factor. The government has not released any official statement regarding the DA merger.
The upcoming DA increase to 60% before the 8th Pay Commission implementation will create major salary and pension alterations. The final results will depend on both the commission recommendations and the fitment factor.
This concludes that while DA may rise further before 2026, its structure after the 8th Pay Commission will depend entirely on official government decisions and final approval.