The luck of government employees will shine! Huge jump in salary up to 65% and preparation for DA merger?

There is tremendous enthusiasm among lakhs of central employees and pensioners across the country regarding the 8th Pay Commission. Amid rising inflation, employees clearly say that it is becoming difficult to run a household with the current basic pay and House Rent Allowance (HRA) in expensive cities like Delhi. In view of this, employees are hopeful that the 8th Pay Commission will give a respectable increase in their basic salary and allowances so that they do not have to struggle for everyday needs. This commission, constituted in November 2025, has been given 18 months to submit its report.

Big demand on family unit and fitment factor

The most prominent demand from employee organizations is to increase the ‘family unit’. At present the family unit is 3, in which 1 unit is fixed for the employee, 0.8 for the wife and 0.6-0.6 units for the children. There is a demand to increase it to 4.4 units. The federation argues that if this change happens, the fitment factor of Level-1 employees will increase from 2.05 to 2.10, which will directly result in a big increase in salary.

Huge increase expected in HRA and transport allowance

In view of inflation, the demand for resetting HRA is also rising loudly. AINPSEF has proposed that the HRA be increased to 36% for X cities, 24% for Y and 12% for Z cities. At the same time, some other organizations are demanding to increase it even more i.e. 40%, 35% and 30%. Besides, it has also been advocated to link these allowances with Dearness Allowance (DA). Apart from this, in view of the increasing expenditure in metro cities, there has been a demand to increase the Transport Allowance (TPTA) by 3 times, so that it can prove sufficient for the employees.

There will be an explosion in salary due to DA merger

Another important demand placed before the Commission is that of ‘DA Merger’. Employee organizations say that when dearness allowance crosses the 25% level, it should be merged into the basic pay. This will create a strong basis for wage revision in future. If all these proposals are accepted, then according to the calculations, a level-1 employee, who currently gets Rs 37,080, can see his salary directly increase to Rs 61,344. This will be a historic increase of about 65% compared to the current salary.