As of January 6, 2026, there is a significant movement regarding the 8th Pay Commission and the Dearness Allowance (DA) revision. Millions of central government employees and pensioners are currently calculating their potential gains as the new pay cycle officially begins.
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1. 8th Pay Commission: The “January 1” Milestone
The 8th Pay Commission has been officially approved to replace the 7th Pay Commission. While the final report and formal rollout often take time, the effective date is January 1, 2026.
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The Fitment Factor: This is the most discussed figure. While the 7th Pay Commission used a factor of 2.57, experts project the 8th CPC fitment factor to range between 1.83 and 2.85.
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Projected Salary Hike: Based on various fitment factor models, employees could see an overall salary increase of 25% to 34%.
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Arrears: If the official notification is delayed (which is common), the government will pay arrears retrospectively from January 1, 2026.
| Pay Level | 7th CPC Basic (Min) | 8th CPC Expected (Low – 1.83) | 8th CPC Expected (High – 2.85) |
| Level 1 (Group D) | ₹18,000 | ₹32,940 | ₹51,300 |
| Level 6 (Group B) | ₹35,400 | ₹64,782 | ₹1,00,890 |
| Level 10 (Group A) | ₹56,100 | ₹1,02,663 | ₹1,59,885 |
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2. DA Hike January 2026: 2% Increase Confirmed
According to the AICPI-IW (All India Consumer Price Index) data released for November 2025 (which stood at 148.2), the first DA revision of 2026 is now essentially set.
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Revised Rate: The DA is expected to rise by 2 percentage points, moving from 58% to 60% of the basic pay.
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Effective Date: January 1, 2026.
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Calculation Basis: The 12-month average of AICPI-IW for 2025 has settled at a level that justifies a 60% rate.
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Official Announcement: The Union Cabinet typically makes the formal announcement in March (around Holi), but it will be paid with arrears from January.
3. Impact on Pensioners (Dearness Relief)
For over 68 lakh pensioners, the 2% hike in Dearness Relief (DR) is vital. Since pensioners do not receive city-based allowances or annual increments like active staff, the DR revision is their only shield against rising inflation….
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