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  1. 8th pay commission: Fitment factor may be linked to 60% DA if the 7th CPC formula stays

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8th pay commission: Fitment factor may be linked to 60% DA if the 7th CPC formula stays

Upstox

3 min read | Updated on February 13, 2026, 07:24 IST

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SUMMARY

The 7th CPC was implemented with effect from January 1, 2016. While deciding the fitment factor, it had assumed that the rate of DA on January 1, 2016, would be 125% of the basic pay. If the same approach continues in the 8th Pay Commission, the 60% DA could serve as the base for calculating the new fitment.

8th pay commission fitment factor calculation

DA rate in January 2026 may serve as the base for calculating fitment factor. | Image source: Shutterstock

The 8th Central Pay Commission (CPC) has begun its work by launching its official website and inviting feedback from stakeholders. The 8th CPC will take its time to submit recommendations on salary and pension revisions.
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As of now, it is not certain whether the 8th CPC will repeat the fitment factor-based approach of the 7th Pay Commission for determining revised salaries. However, if the 8th CPC continues with the same formula, then the dearness allowance at 60% could serve as the base for fitment factor calculation.

Based on the AICPI-IW data of 2025, the dearness allowance of central government employees is expected to be raised to 60% with effect from January 1, 2026. We did a calculation on this in a previous article. Check here.

The 7th Pay Commission had taken the DA rate as on January 1, 2016, as the base for calculating fitment. Going by the 7th CPC norm, the January DA rate should be considered for calculating the fitment factor.

Here's how it was done:

The 7th CPC had set ₹18,000 as the starting point for the first level of the new pay matrix. This corresponded to the starting pay of ₹7,000, which was the beginning of Pay Band-1 (₹5,200 + Grade Pay 1800) prevailing on 01.01.2006, the date of implementation of the 6th CPC recommendations. Hence, the starting point proposed by the 7th CPC was 2.57 times what was prevailing on 01.01.2006.

Further, the 7th CPC had recommended applying this fitment factor of 2.57 uniformly for all employees.

The fitment factor of 2.57 included a factor of 2.25 on account of dearness allowance neutralisation, assuming that the rate of DA would be 125% at the time of implementation of the new pay from January 1, 2016.

The 7th CPC was implemented with effect from January 1, 2016. While deciding the fitment factor, it had assumed that the rate of DA on January 1, 2016, would be 125% of the basic pay. If the same approach continues in the 8th CPC, the 60% DA could serve as the base for calculating the new fitment.

8th CPC fitment factor base: key points
TopicKey points
Status of 8th CPC workThe 8th CPC has begun work, launched its official website, and invited stakeholder feedback.
Fitment factor approachIt is not yet known whether the 7th CPC’s fitment‑factor method will be repeated.
Possible base for 8th CPC fitmentIf the same formula continues, DA at 60% (expected from Jan 1, 2026) could become the base.
Expected DA (Jan 2026)Based on AICPI‑IW 2025 data, DA may reach 60% effective Jan 1, 2026.
7th CPC methodThe 7th CPC used the DA rate as of Jan 1, 2016 (assumed 125%) to set the fitment factor.
How fitment 2.57 was derivedStarting pay moved from ₹7,000 (01.01.2006) to ₹18,000 → multiplier 2.57 applied uniformly.
Components of 2.57Included 2.25 as DA‑neutralisation, assuming DA would touch 125% at implementation.
Implication for 8th CPCIf the same logic holds, 60% DA from Jan 1, 2026, may serve as the new fitment base.
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