Will dearness allowance increase before the 8th Pay Commission? Know the update from DA to TA

8th Pay Commission: The last DA increase of this year has been announced in October 2025, after which dearness allowance has increased to 58 percent. The new dearness allowance is applicable from July 1, 2025. The question is whether DA, HRA and TA allowances will increase even after December 31, 2025?

By when will DA allowance increase?

Till the implementation of 8th Pay Commission, Dearness Allowance (DA) will be paid on the basis of 7th Pay Commission only. Let us tell you, dearness allowance increases every 6 months. According to media reports, the increase that has taken place in 6 months is continuing and will continue for 18 months. At present dearness allowance is 58 percent, which can increase to 67 percent in 18 months. After the implementation of the 8th Pay Commission, dearness allowance will be merged into the basic salary.

Effect of increase in DA on fitment factor

Let us tell you, fitment factor is the multiplier by which the new basic salary is determined by multiplying the old basic salary. In fact, every year an employee gets an increment of about 3.5% in his basic salary. Employees can increase their basic salary by about 20% in 18 months by combining two year increments and three DA increases. Due to which the fitment factor may increase from 1.58 to approximately 1.78.

If the family unit is increased from 3 to 3.5 and 15% inflationary growth factor is also added, the fitment factor can reach approximately 2.13. This means that the current basic salary of the employees can more than double.

Also read: 8th Pay Commission: Will the salary of government employees increase from January 1, 2026? Know the latest update on arrears of 8th Pay Commission

What effect on other allowances?

Along with DA, other important allowances may also increase. In which the possibility of increase in House Rent Allowance (HRA) is highest, because it is linked to both basic salary and DA. Similarly, Transport Allowance (TA) and Children Education Allowance (CEA) may also increase. Other allowances like Fixed Medical Allowance (FMA) and Dress Allowance for pensioners are also expected to increase.