8th pay commission Update: Millions of central government employees and pensioners were expecting a DA/DR announcement this Navaratri. They are eagerly waiting for the DA/DR (Dearness Allowance and Dearness Relief) announcement from the Centre, as one is due this year. These allowances, which are linked to inflation, are typically revised twice every year. With the second revision of 2025 now due, there is growing anticipation as well as frustration among employees and pensioners. The enthusiasm on the issue is now been shifted to Diwali.
The Confederation appeals to FM Niramala Sitharaman
The Confederation of Central Government Employees and Workers has written to Finance Minister Nirmala Sitharaman. The letter urged immediate action, pointing out that the DA/DR installment effective from July 1, 2025, has not yet been declared. The Confederation highlighted that this revision is usually announced in the last week of September, with three months’ arrears released in the first week of October. The delay, according to the letter, has created “severe discontent” among employees and pensioners, many of whom are depending on the hike to manage rising costs.
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What the Confederation says in the Letter
The Confederation states in the letter, this is to “draw your kind attention towards non-declaration of the due instalment of DA/ DR w.e.f. from 01-07-2025, normally it used to be declared in the last week of September and three months arrears paid in the first week of October.” It labelled “severe discontent” among employees and pensioners, many of whom are depending on the hike to manage rising costs. Earlier this year, the government raised DA and DR from 53 percent to 55 percent, starting from January 1, 2025. This gave some relief, but the new revision for July to December 2025 has still not been declared.
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8th pay commission Highlights (delay)
- Employees are still waiting for the official notification of the 8th Pay Commission and the formation of its panel.
- This long wait has disappointed many employees.
- Compared to earlier pay commissions, the process of forming the 8th Pay Commission has taken longer.
- The DA hike for July-December 2025 will be the last revision under the 7th Pay Commission.
- The 7th Pay Commission is expected to end on December 31, 2025.
8th pay commission: How the Fitment Factor Works
- Current (7th CPC): Basic Pay × 2.57 = Revised Basic Pay (plus DA, HRA, etc.)
- Proposed (8th CPC): Basic Pay × 2.86 = New Basic Pay (DA starts at 0%, but merged allowances boost the base)
8th pay commission: How to Calculate the Fitment factor?
- The minimum basic pay under the 7th CPC is ₹18,000. With a 2.86 fitment factor
- New Minimum Basic Pay: ₹18,000 × 2.86 = ₹51,480 (a ~186% jump from the pre-7th CPC base, or ~30% effective hike post-DA merger)
If the fitment factor increases to 1.92
- New Minimum Basic Pay = ₹18,000 × 1.92
- ₹18,000 × 1.92 = ₹34,560 (a ~92% jump from the pre-7th CPC base, or ~15–16% effective hike post-DA merger).
Now for the approximate jump if the Fitment factor is increased to 1.92
- Pre-7th CPC base = ₹18,000
- Increase = ₹34,560 − ₹18,000 = ₹16,560
- Percentage jump = (16,560 ÷ 18,000) × 100 ≈ 92%