New Delhi: In a major development for the Central government employees who are waiting for the details on the 8th Central Pay Commission especially whether salary and pension revisions will be backdated to January 1 2026 entitling them to arrears. Minister of State for Finance Pankaj Chaudhary while addressing the questions on implementation said The date will be decided by the government. We will make appropriate fund provisions for implementing accepted recommendations. As per the ET report the 7th Pay Commissions 10-year term ends on December 31 2025 but the government has remained non-committal on the effective date amid recent Parliament queries. The Terms of Reference (ToR) for the 8th Central Pay Commission were notified on November 3 2025 granting the commission an 18-month timeframe to submit its report which is expected by mid-2027. Approval and notification could add another 3–6 months pointing to potential rollout in late 2027 or early 2028. It is important to note that the past commissions often faced delays but provided backdated arrears: 7th CPC: Implemented June 2016; arrears from January 1 2016 6th CPC: Approved August 2008; arrears from January 1 2006 5th CPC: Formed 1994; implemented 1997 (delayed 3.5 years) Employee unions including All India NPS Employees Federation President Manjeet Singh Patel argue for arrears from January 1 2026 in line with tradition. Why HRA Exclusion Could Limit Arrears The government traditionally excludes House Rent Allowance (HRA) from arrears calculations saving significant funds. Example for basic pay Rs 76500 (assuming fitment factor 2.0): Current take-home (with DA & HRA): Rs 143820 Post-8th CPC: ~ Rs 194310 Monthly arrear without HRA: Rs 32131 Monthly arrear with HRA: Rs 50490 For one employee this saves ~ Rs 18360 per month on HRA alone.