8th Pay Commission: DA Rises To 60%, Employee Unions Seek Fitment Factor Of Up To 3.833

The gap between successive pay commission revisions and the steady rise in Dearness Allowance (DA) has become a key issue in submissions to the 8th Pay Commission, with employee bodies seeking a higher fitment factor and changes to the way inflation-related adjustments are handled.

The Confederation of Central Government Employees and Workers (CCGEW) has cited DA’s increase from 46% in July 2023 to 60% in January 2026. Against this backdrop, unions and pensioners’ groups have proposed fitment factors ranging from 3.61 to 3.833, alongside measures such as merging DA or Dearness Relief (DR) with basic pay or pension at specified thresholds.

The three-member commission, chaired by Justice Ranjana Prakash Desai, held a consultation in Bengaluru on October 8. Its next meetings are scheduled for Mumbai on October 22 and 23.

From 46% To 60%: DA Increases Cited In Pay Commission Submissions

The DA rate rose in stages between July 2023 and January 2026, according to figures shared by the CCGEW.

Employee organisations have cited this progression in their submissions, arguing that the next pay revision should account for the impact of rising living costs on salaries and pensions.

Their proposals focus on the fitment factor, which is used to calculate revised basic pay by multiplying an employee’s existing basic salary by a prescribed number. For comparison, the 6th Pay Commission adopted a factor of 1.86, while the 7th Pay Commission recommended 2.57.

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Fitment Factor Of 3.833, Minimum Basic Pay Of Rs 69,000 Among Key Demands

The NC-JCM staff side has sought a fitment factor of 3.833 and minimum basic pay of Rs 69,000 under the 8th Pay Commission.

Other organisations have put forward their own proposals. Bharat Pensioners Samaj has sought a factor of 3.83, while the Ministerial Staff Association, Survey of India, has proposed 3.61.

These are demands submitted by employee and pensioner bodies, not approved pay revisions. The fitment factor that will ultimately apply will depend on the commission’s recommendations and the central government’s decision.

DA Merger: Postal Employees’ Body Proposes Permanent Wage Review Panel

Some organisations want a mechanism that could trigger a pay review before the next pay commission cycle, rather than relying solely on periodic revisions.

The Federation of National Postal Organisations (FNPO) has proposed creating a Permanent Wage Review Body. Under its suggestion, the body would recommend a revised fitment factor within 90 days whenever DA or DR reaches 50%.

The federation has also called for DA and DR to be merged with basic pay once either allowance crosses 25%. Bharat Pensioners Samaj has proposed that DR be considered for merger with basic pension after it exceeds the same 25% threshold.

The proposals differ in their specific mechanisms, but both seek changes to how inflation-related allowances feed into the pay and pension structure.

8th Pay Commission Consultations Continue; Report Expected In 2027

The commission was constituted on November 3, 2025, and has held consultations in Delhi, Ladakh, West Bengal and Puducherry, in addition to its recent meeting in Bengaluru. During these discussions, unions and associations have raised concerns about inflation and submitted proposals for serving central government employees and pensioners.

The next round of meetings is scheduled in Mumbai on October 22 and 23.

The commission’s final report is tentatively expected around May-June 2027. Its recommendations will set out the proposed changes, but the revised pay structure will depend on the central government’s subsequent decision.

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