8th Pay Commission DA calculator: What 25% dearness allowance may mean for Level 6-8 employees

The 8th Pay Commission’s two-day discussions with stakeholders started in Bengaluru on Wednesday. In the two-day meetings, the Pay Commission is discussing with central government employee and pensioner bodies and other stakeholders, matters related to salary, allowances, pension, work conditions and more.

Once the 8th Pay Commission prepares its report and Centre notifies it, the salaries of central government employees will be revised. With the salary revision, their dearness allowance (DA) will also be calculated as per their new basic salaries, which may jump the payout significantly.

The current DA rate for central government employees is 60% and it will keep rising till the 8th Pay Commission’s report is notified. Once the new salary structure is in place, DA calculation will start from 0. Once the basic pay of Level 6 to 8 employees are revised in the 8th Pay Commission, how can their DA rise and how may it impact their overall payout? Let’s find out!


Also Read: 8th Pay Commission calculator: What can Level 6-8 salaries be at 2.0, 2.15, 2.28 and 2.57 fitment factors?

How does DA impact the salaries of Level 6-8 employees?

As per the 7th Pay Commission, the starting basic salaries of Level 6, 7 and 8 employees are Rs 35,400, Rs 44,900 and Rs 47,600. At the current DA rate of 60%, their salaries will be approximately-

Employee level	Basic pay as per 7th CPC	Salary with 60% DA
Level 6	₹ 35,400	₹ 56,640
Level 7	₹ 44,900	₹ 71,840
Level 8	₹ 47,600	₹ 76,160

These salaries exclude other allowances such as HRA and TPTA.

How DA may change for Level 6-8 employee salaries in 8th CPC

Since the actual salary will be known once the 8th Pay Commission’s report is notified, we are calculating the expected jump at 2.0, 2.15, 2.28 and 2.57 fitment factors. We are taking 25% DA for the calculation as it is a significant landmark in terms of salary. At that percentage level, employees can easily figure out the difference it can make to their revised salaries.

Also Read: 8th Pay Commission pension estimates for Level 5-9 employees: Can they get up to Rs 68,000 minimum basic pension at retirement?

We are not taking HRA, TPTA or any other allowances for calculation purposes.

Expected 8th CPC DA for Level 6 employees at 2.0, 2.15, 2.28 and 2.57 fitment factors

Scenario	Basic	DA rate	DA	Basic + DA
7th CPC	₹ 35,400	25%	₹ 8,850	₹ 44,250
8th CPC – 2.00x	₹ 70,800	25%	₹ 17,700	₹ 88,500
8th CPC – 2.15x	₹ 76,110	25%	₹ 19,028	₹ 95,138
8th CPC – 2.28x	₹ 80,712	25%	₹ 20,178	₹ 1,00,890
8th CPC – 2.57x	₹ 90,978	25%	₹ 22,745	₹ 1,13,723

Expected 8th CPC DA for Level 7 employees at 2.0, 2.15, 2.28 and 2.57 fitment factors

Scenario	Basic	DA rate	DA	Basic + DA
7th CPC	₹ 44,900	25%	₹ 11,225	₹ 56,125
8th CPC – 2.00x	₹ 89,800	25%	₹ 22,450	₹ 1,12,250
8th CPC – 2.15x	₹ 96,535	25%	₹ 24,134	₹ 1,20,669
8th CPC – 2.28x	₹ 1,02,372	25%	₹ 25,593	₹ 1,27,965
8th CPC – 2.57x	₹ 1,15,393	25%	₹ 28,848	₹ 1,44,241

Expected 8th CPC DA for Level 8 employees at 2.0, 2.15, 2.28 and 2.57 fitment factors

Scenario	Basic	DA rate	DA	Basic + DA
7th CPC	₹ 47,600	25%	₹ 11,900	₹ 59,500
8th CPC – 2.00x	₹ 95,200	25%	₹ 23,800	₹ 1,19,000
8th CPC – 2.15x	₹ 1,02,340	25%	₹ 25,585	₹ 1,27,925
8th CPC – 2.28x	₹ 1,08,528	25%	₹ 27,132	₹ 1,35,660
8th CPC – 2.57x	₹ 1,22,332	25%	₹ 30,583	₹ 1,52,915

What is dearness allowance (DA) for central government employees?

Dearness allowance is a cost-of-living adjustment amount paid to mitigate the impact of inflation. The DA is based on the All India Consumer Price Index- Industrial Workers (AICPI-IW), which releases its monthly reading at the end of every month. The index shows rising inflation. As inflation rises, the DA also increases.

The government announces the DA twice a year, based on the index’s December and June readings. The announcement is mostly around a festival, such as Holi and Dussehra.

Also Read: 8th Pay Commission arrear calculator: Why Level 7 employees may lose Rs 3.32 lakh due to 8th CPC report implementation delay

How is the DA added to the basic salary?

The starting basic salary of a Level 1 employee is Rs 18,000, and the DA rate is 60%, the salary of such an employee will be Rs 28,000= Rs 18,000 + (60% of Rs 18,000).

However, this is not their gross salary as employees also get house rent allowance (HRA) and transport allowance (TPTA). There are many other allowances given to specific categories of employees.

What is the formula to calculate DA?

DA% = [{12-month average of AICPI-IW (base year 2001)– 261.42}/261.42x100]

The government announces the DA in round figures. For example, if the DA is 62.59%, the government will consider it 62%. However, percentage points are adjusted to the upcoming DA cycles.