8th Pay Commission BIG update: Is Modi government planning to merge DA? Salary and pension of employees likely to be…, Finance Ministry to…

8th Pay Commission: Central government employees and pensioners have been eagerly waiting for the implementation of the 8th Pay Commission. Along with that, the employees are also wondering whether the Dearness Allowance (DA) will be merged with the basic salary this time. It is important to note that the government has announced that the recommendations of the 8th Pay Commission will come into effect from January 1, 2026, while the 7th Pay Commission will remain in force until December 31, 2025.

The Central government employees have demanded that as per the old rule, when the DA crosses 50 percent, it should be merged with the basic salary. Some media reports have also claimed that DA may be merged. However, the government has clarified that there is no proposal at present to merge DA with the basic salary.

When will the hike happen? Will there be a change in the basic salary?

Experts are of the opinion that this time the fitment factor (8th Pay Commission Fitment Factor) — the multiplier used to calculate the increase in basic salary — could be around 2.86. This means that if a Level-1 employee currently has a basic salary of Rs 18,000, then under the new structure, their basic salary could increase to approximately Rs 51,000.

However, this is only an estimate, and the final increase will be determined after the official recommendations are released.

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