Good News! 8th Pay Commission formed, there will be a bumper jump in the salary of government employees, DA zero

The year 2025 has brought a very good news for government employees and pensioners. The government has appointed the chairman and members for the 8th Pay Commission which was awaited for a long time. This simply means that now work will start on the salary, fitment factor and allowances of the employees and in the coming time, you are going to see a tremendous increase in your salary.

So let us understand in simple language how this will affect your pocket and for how long it can be implemented.

When will the 8th Pay Commission be implemented?

The government has given the commission 18 months i.e. one and a half years to submit its report. Accordingly, it is expected that The recommendations of the 8th Pay Commission may come into effect by the beginning of 2027.

Biggest change: Dearness Allowance (DA) will become zero!

This is the most important and biggest change. The rules of Dearness Allowance will change as soon as the 8th Pay Commission is implemented.

• DA will be merged: Currently, employees are getting 58% DA of their basic pay. Under the new recommendations, this entire 58% DA will be added to your basic salary.
• New beginning will be from zero: When DA gets mixed with basic salary, the calculation of dearness allowance will start again from zero. However, like before, the government will continue to amend DA twice a year.

What is this fitment factor game?

Fitment factor is the ‘magic number’ which decides how much your salary will increase. This is a multiplier which is multiplied with your old basic salary to decide the new basic salary.

• Example of 7th Pay Commission: Fitment Factor in 7th Pay Commission 2.57 Was. That is, if someone’s basic salary was Rs 35,000, then the new basic salary was: 35,000 x 2.57 = Rs 89,950,
• Expectation in 8th Pay Commission: It is believed that the fitment factor in the 8th Pay Commission can be anything between 2.0 and 2.5.

Understand with example how much your salary can increase.

Let’s estimate your new salary based on various fitment factors:

1. If fitment factor is 2.0:
   • Let’s say your basic salary Rs 50,000 Is.
   • Your new basic salary will be: 50,000 x 2.0 = Rs 1,00,000,
2. If fitment factor is 2.11:
   • Let’s say your basic salary Rs 35,000 Is.
   • Your new basic salary will be: 35,000 x 2.11 = Rs 73,850,

Allowances will also be affected
Salary does not consist only of basic pay. HRA (House Rent Allowance) and many other allowances are decided on the basis of your basic salary. When your basic salary increases, all these allowances will also increase accordingly, thereby increasing your in-hand salary even more.