The dearness allowance (DA) is paid by the Indian government to help its employees manage the rising cost of living. Under the 7th Pay Commission, DA growth remained slower than what was seen in earlier pay panels. Now, this gap could turn into an advantage. With the 8th Pay Commission on the way, experts believe government employees may see a solid salary boost.
DA is already at 58% and may touch 70% before the new pay panel comes into effect.
8th Pay Commission DA Hike: Why It Could Be Big
The government revises DA twice every year, in March and October. These changes apply from January and July. Reports suggest the next revision in March 2026 may take DA to around 60%. After that, two more revisions are expected by mid-2027.
By the time the 8th Pay Commission submits its recommendations, DA could reach close to 70%. This matters because whenever a new pay commission is implemented, DA is reset to zero and merged into the new basic pay. A higher DA at the time of reset usually means a better jump in salaries.
In the past, this pattern has helped employees. Under the 5th Pay Commission, DA touched 74%. During the 6th Pay Commission, it went as high as 124%. In comparison, the 7th Pay Commission has seen slower growth, making the upcoming revision more impactful.
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8th Pay Commission DA Hike: What Slowed Down 7th CPC
One major reason behind the slow DA growth in the 7th Pay Commission was the COVID-19 pandemic. The government froze DA for 18 months due to financial pressure and rising health expenses. Employees missed out on regular increases during this period.
Another key element is the fitment factor. This is the multiplier used to calculate the new basic pay. In the 7th Pay Commission, the fitment factor was 2.57. This means the old basic pay was multiplied by 2.57 to get the new salary.
For the 8th Pay Commission, the fitment factor is expected to stay around 2.5. If DA reaches close to 70% before the reset, and the new fitment factor remains strong, employees could see a meaningful rise in their monthly pay. For many government workers, the 8th Pay Commission may finally make up for the slow years under the 7th CPC.