8th Pay Commission: How Level 6 basic salary may double in 7 years after DA merger; calculations explained
The 8th Pay Commission, headed by Justice Ranjana Prakash Desai, recently concluded its meeting in Puducherry on 9 September. The next meetings will be held in Chandigarh on 16, 17 and 18 September.
Since its constitution on 3 November 2025, the 8th Pay Commission has held several meetings in different cities across the country.
During these meetings, employee grievances related to salary revisions, fitment factor decisions, employee morale, pension reforms and the merger of the Dearness Allowance (DA) with basic pay, among other issues, have been highlighted by prominent employee unions and stakeholders.
Employee and pensioner unions have urged the 8th Pay Commission panel to consider merging DA with basic pay once it exceeds 25%. This proposal, if accepted, can accelerate salary growth for central government employees, particularly those at lower pay levels.
Why employee groups want DA merged with basic pay
According to the All India National Pension System Employees Federation (AINPSEF), such a merger will help achieve salary increases more quickly in the years to come, and the employees will not need to wait for 10 years for a reasonable hike.
National Council – Joint Consultative Machinery (NC-JCM), on the other hand, has submitted a demand to the 8th Pay Commission in its official memorandum, urging it to merge DA with basic pay once DA crosses 25% of basic pay. On similar lines, other prominent unions have urged the 8th Pay Commission to merge DA with basic pay at specified thresholds.
Under the current system, DA is revised twice a year. Still, it is not automatically merged with the basic pay. AINPSEF said the merger would help employees receive constructive salary increases sooner, particularly those facing rising living costs in major cities across the country.
The organizations have also proposed higher annual increments than those recommended by the 8th Pay Commission. NC-JCM and AINPSEF have, for example, suggested annual increments of 6% and 7%, respectively.
How a Level 6 employee’s salary may double in 7 years
To understand how the proposed DA merger may affect salaries, let us consider a Level 6 central government employee with an existing pay of ₹35,400 as provided under the 7th Pay Commission. Now, assuming a fitment factor of 2.1, the revised basic pay under the 8th Pay Commission will be ₹74,340.
Assuming a 7% annual increment, as proposed by AINPSEF, along with an average DA increase of 4%, the employee’s basic pay is estimated to reach ₹1,19,374 by 1 January 2033. At an assumed DA rate of about 28%, the DA amount would be ₹33,425. The estimated gross salary, including basic pay and DA, would be about ₹1,52,798, as shown in the following table.
Level 6 salary calculation: 2026 to 2033
|
Particulars |
Amount |
|---|---|
| Existing basic pay under 7th CPC | ₹35,400 |
| Assumed 8th CPC fitment factor | 2.1 |
| Revised basic pay from Jan 2026 | ₹74,340 |
| Assumed annual increment | 7% |
| Assumed annual DA increase | 4 percentage points |
| Estimated basic pay on Jan 1, 2033 | ₹1,19,374 |
| Assumed DA rate in 2033 | 28% |
| Estimated DA amount | ₹33,425 |
| Estimated gross salary in 2033 (Basic Pay+ DA) | ₹1,52,798 |
Note: The figures discussed above are illustrative in nature.*
What happens if DA is merged with basic pay?
The example discussed above shows that the employee’s estimated gross salary of ₹1,52,798 by January 2033 would be more than double the assumed revised basic pay of ₹74,340 in January 2026.
Hence, if DA is merged with basic pay at that stage, the employee’s eventual basic pay can be approximately ₹1,52,798 under the proposed scenario. This is how the basic salary might double in seven years.
Please note that the calculation above does not represent an approved salary structure. The 8th Pay Commission is currently in its consultation phase, and any concrete official figures will only be revealed once the final 8th Pay Commission report is submitted to the Commission.
