Salary Shock! DA Merged, But No Extra Fitment Hike for Central Workers!

DA Merged : In a move that has left central government employees both hopeful and disappointed, the Centre has announced the merger of Dearness Allowance (DA) with the basic pay. However, contrary to widespread expectations, there will be no increase in the fitment factor, which means no additional hike in salaries beyond the DA adjustment. Employees were hoping for a double benefit — but the government’s latest decision has confirmed only a partial relief. Let’s dive deep into what this means for lakhs of employees across India.

Understanding the DA Merged

The Dearness Allowance (DA) is a cost-of-living adjustment allowance paid to government employees and pensioners. Periodically, when the DA percentage becomes significantly high, it is merged with the basic pay. This helps simplify salary calculations and offers a sense of satisfaction to employees.

• DA is merged once it crosses a threshold (usually 50%).
• Merging helps in recalculating allowances like HRA, TA, etc., which are based on basic pay.
• After the merger, future DA increases will start from zero.
• However, no additional fitment factor hike means no extra raise apart from DA benefits.

What is the Fitment Factor and Why it Matters

The fitment factor is the number by which the basic pay is multiplied to calculate the final salary. It plays a crucial role in determining the actual salary growth during pay commission revisions.

• Current Fitment Factor: 2.57 times the basic pay
• Expected Increase: Many employees were demanding an increase to 3.68 times.
• Reality Check: Government has decided to retain it at 2.57.

Here’s a simple comparison table:

Particulars	Previous Scenario	Current Update
DA Before Merger	50%	Merged with Basic Pay
Fitment Factor	2.57	Remains 2.57
Employees’ Expectation	3.68 Fitment Factor	Not Fulfilled
Salary Increase Type	Only DA-based adjustment	No new fitment hike
Effective Timeline	Post DA Merger Notification	Already Applicable
Impact on Pensioners	Only DA Merger Benefit	No extra hike through fitment
Future DA Calculation	Fresh from 0%	Yes

Impact on Central Government Employees

The immediate implications of the DA merger without fitment factor enhancement are crucial for employees to understand:

• Salary will increase due to DA merger but not exponentially.
• All allowances tied to basic pay (like HRA, TA) will witness a minor upward adjustment.
• Pension benefits will also align with the new basic pay structure.
• Future increments will be calculated based on the revised basic pay.
• But the real salary jump employees were expecting through fitment factor change remains unfulfilled.

Expectations vs Reality: What Employees Wanted

Central government employees were anticipating a major bonanza with two significant changes:

1. DA merger with basic pay
2. A hike in the fitment factor to 3.68, which would lead to a substantial salary hike.

Here’s a snapshot of expectations versus what actually happened:

Factor	Employees’ Expectation	Actual Announcement
DA Merger	Yes	Yes
Fitment Factor Hike	From 2.57 to 3.68	No change, remains 2.57
Salary Jump Expected	40-50% hike	Only DA-linked hike
Implementation Timeline	Immediate after DA merger	Immediate, but limited impact
Future Pay Commission	Possible Discussions	Not addressed yet

Why Did the Government Avoid Fitment Factor Hike?

Several reasons are believed to have influenced the decision:

• Massive financial burden on the government’s exchequer.
• Inflation control measures already in place.
• Upcoming general elections prompting cautious financial steps.
• Government might reserve bigger reforms for the next Pay Commission discussions.

Potential Future Scenario for Central Employees

Though the current development may seem disappointing, employees can still look forward to future policy announcements:

• 8th Pay Commission proposals might address fitment factor revisions.
• Regular DA hikes will continue every 6 months based on inflation.
• Other perks and benefits for central government employees are under review.
• Pension revision norms could be updated in coming years.

Potential timelines for upcoming revisions:

Event	Expected Time	Notes
Next DA Hike	July 2025	Based on AICPI index performance
8th Pay Commission Setup	2026-27	Likely after next elections
Fitment Factor Revision	Post-2027 Pay Commission Report	Subject to government approval
Allowances Revision	Annually	Based on pay matrix restructuring

Employee Reactions

The mixed reactions from various employee unions and federations were expected:

• Many unions welcomed the DA merger as a positive step.
• Strong disappointment was expressed over the fitment factor issue.
• Calls for nationwide protests and memorandum submissions are gaining momentum.
• Employees are still hopeful that government will revisit the fitment factor demand soon.

While the merger of Dearness Allowance with basic pay brings partial relief to central government employees, the absence of a fitment factor hike has certainly left many disheartened. For now, employees will have to settle for the DA-linked salary revisions and wait for the next Pay Commission or special announcements for any significant salary hike. As of today, the government’s stance is clear: fiscal prudence takes priority over populist measures. However, with elections and future policy reviews on the horizon, employees can still harbor cautious optimism for better days ahead.

Disclaimer: The information provided in this article is based on official announcements and credible news sources. Employees are advised to stay connected with their departments or government notifications for the latest updates and clarifications.