If you’re a central government employee, you’ve probably asked yourself this question more than once lately “Will 60% or 70% of Dearness Allowance (DA) merge into my basic salary under the 8th Pay Commission?”
The buzz is real, and so is the confusion. Some reports say 70%, others insist on 60%. So, what’s the truth? Let’s break this down in plain, simple words — no jargon, just clarity.
The Big Picture: When Does the 8th Pay Commission Kick In?
The 8th Pay Commission is set to be implemented from January 1, 2026. That’s when the new salary structure officially takes effect.
But here’s where most people get mixed up — while the implementation date is January 2026, the recommendations are expected only by June 2027. So, the obvious question is: “If DA keeps rising after January 2026, will the higher rate be merged too?”
The Golden Rule of DA Merging
There’s a simple, time-tested rule for every Pay Commission:
“Only the DA that exists up to the implementation date is merged into the new basic salary.”
That means — whatever the DA percentage is on January 1, 2026, that’s what counts. Anything that comes after that date belongs to the new cycle and is calculated separately.
So even if the DA climbs to 70% by mid-2027, the government will freeze the merger at 60%, because that’s the projected rate for January 2026.
A Quick Reality Check: What the Numbers Say
Let’s bring in the data.
According to AICPI (All India Consumer Price Index) trends:
- By January 2025, DA is already around 58%.
- By January 2026, it’s expected to hit 60%.
- And by June 2027, it could reach 70% — but by then, the new pay structure would already be in effect.
So, even if the recommendations are delayed, the DA merge will still be capped at 60%.
An Easy Example: How This Works in Real Life
Let’s say your current basic pay is ₹40,000, and the DA reaches 60% by January 2026.
Your total pay before the 8th Pay Commission would look like this:
₹40,000 + ₹24,000 (DA at 60%) = ₹64,000
Now, when the 8th Pay Commission takes effect with an expected fitment factor of 1.92, your new basic pay becomes:
₹40,000 × 1.92 = ₹76,800
That means the 60% DA is already absorbed into your new basic pay. Once this happens, the DA cycle resets to 0%, and new increments will start from there — 3%, 6%, 9%, and so on, in future revisions.
Why 70% DA Won’t Be Added Later
It’s tempting to think that since DA may reach 70% by mid-2027, the government might include it later. But history says otherwise.
Every Pay Commission has followed the same rule:
- 5th Pay Commission (1996): Merged DA up to 151%
- 6th Pay Commission (2006): Merged DA up to 115%
- 7th Pay Commission (2016): Merged DA up to 125%
And now, 8th Pay Commission (2026): Only DA up to 60% will be merged.
The date of implementation — not the report submission — decides the DA merge. It’s that simple.
What Experts Say About the DA Merge Rule
Experts in pay policy confirm this.
A senior member of the Central Government Employees Federation explains,
“DA merger always happens until the implementation date. Even if the report arrives a year later, the merger date remains unchanged.”
So yes, the 8th Pay Commission’s DA merge will be 60%, not 70%. Everything beyond that will belong to the new DA cycle, applied on the revised salary.
Understanding the Fitment Factor
The fitment factor is what helps transition old pay to new pay.
In the 7th Pay Commission, it was 2.57, which included a 125% DA.
Now, with 60% DA under the 8th Pay Commission, the fitment factor is expected to range between 1.92 and 2.05. This will raise your basic salary roughly 1.9 to 2 times — and automatically adjust all allowances like HRA, TA, and pension accordingly.
After 2026: The New DA Cycle Begins
Once the 8th Pay Commission is implemented, the DA resets to zero on January 1, 2026, and starts increasing again. By July 2027, you might already see 3–4 DA hikes in the new cycle.
This pattern will repeat every decade — DA builds up, inflation rises, and eventually, a new Pay Commission steps in again.
What This Means for You
Don’t think of the 60% DA cap as a loss. It’s actually a reset advantage.
The merged DA becomes part of your new basic pay, which boosts everything else — from allowances to retirement benefits. So, instead of losing out, you actually start a fresh cycle with a stronger foundation.
Think of it like upgrading your phone — your old data (DA) is already baked in, and now you’re ready for faster updates.
Frequently Asked Questions
Q1. What will be the DA by January 2026?
It’s expected to reach around 60% according to current AICPI data.
Q2. What if DA touches 70% by June 2027?
That extra 10% won’t be merged. It’ll be part of the new DA cycle after the pay commission’s implementation.
Q3. How much DA will the government merge under the 8th Pay Commission?
Only 60%, as that’s the rate on the implementation date — January 1, 2026.
Q4. What will the fitment factor likely be?
Experts expect it between 1.92 and 2.05, which means a salary rise of nearly 1.9 to 2 times.
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