8th Pay Commission May Recommend Lower Fitment Factor if DA Is Merged With Basic Pay, Says Report

New Delhi, April 05: The 8th Pay Commission may propose a lower-than-expected fitment factor if the Centre agrees to merge Dearness Allowance (DA) with basic pay, according to union leaders involved in the process. While employee forums have pushed for a fitment factor between 2.57 and 2.86, sources told NDTV Profit that the actual recommendation could fall short of those figures if the merger takes place.

The fitment factor is a key multiplier used to revise salaries and pensions for government employees. In 2016, the 7th Pay Commission had implemented a 2.57 fitment factor. Although union leaders on the National Council-Joint Consultative Machinery (NC-JCM) had earlier demanded the same or higher in the 8th Commission, they now suggest that a lower factor may be acceptable if DA is integrated into basic pay. 8th Pay Commission: How Much Salary Hike Central Govt Employees Will Get? Check Latest Update.

Merging DA with basic pay would lead to an automatic upward revision of various allowances, which could offset a reduced fitment factor. Historically, under the 5th Pay Commission, DA was merged once it crossed 50%, which happened in 2004. However, this practice was discontinued during the 6th Pay Commission (2006–2016). The 7th Pay Commission had recommended restoring it, but the government did not implement it at the time. 8th Pay Commission To Be Delayed? Know Why Implementation of 8th CPC May Get Delayed Till 2027.

Now, with inflation pushing DA beyond the 50% mark again, talks of merging DA with basic pay have gained momentum, and this could significantly influence the 8th Pay Commission’s final recommendations, both in structure and salary calculations.

(The above story first appeared on Today News 24 on Apr 05, 2025 04:45 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website todaynews24.top).