Central government employees and pensioners are closely tracking updates related to the 8th Central Pay Commission, as clarity is gradually emerging on salary revision and arrears. While the revised pay structure is expected to be effective from January 1, 2026, its actual implementation may take time. This delay makes one question especially important for employees: how much arrears will they receive and how will it be calculated? Here is a simple and detailed explanation in clear terms.
As per long-standing practice, the central government revises pay every ten years by setting up a new pay commission. Following this tradition, the 8th Pay Commission is expected to take effect from January 1, 2026, after the tenure of the 7th Pay Commission ends.
However, past experience suggests that pay commission recommendations are rarely implemented immediately. The process involves drafting a detailed report, consultations with stakeholders, approval by the Union Cabinet, and budgetary allocation. All of this can take several months, and in some cases, more than a year. Because of this, it is widely expected that the actual salary revision may happen towards the end of 2026 or even in 2027.
The good news for employees and pensioners is that any delay in implementation does not mean a loss of money. If the revised salaries are implemented later than January 1, 2026, the government will pay arrears for the entire delayed period.
Arrears are calculated from the date the pay commission is considered effective to the date when the revised salary is actually credited. For example, if the new pay structure is implemented in May 2027, employees will receive arrears from January 2026 to April 2027, which amounts to around 15–16 months.
If implementation is pushed further and happens in 2028, then employees could receive arrears for two full years or more, making the lump sum amount significantly higher.
Understanding the arrears calculation is easier than it sounds. The basic formula involves three steps:
Calculate the difference between old salary and revised salary
Find the number of months of delay
Multiply the monthly difference by the number of delayed months
Let us understand this with an example:
Old monthly salary: ₹45,000
Revised monthly salary: ₹50,000
Monthly increase: ₹5,000
If the revised pay is implemented after 15 months, the arrears will be:
₹5,000 × 15 months = ₹75,000
If the delay stretches to 24 months, the arrears amount will be:
₹5,000 × 24 months = ₹1,20,000
It is important to note that arrears are not limited to basic pay alone. The calculation will also include the difference in Dearness Allowance (DA) and other revised allowances. This means the actual arrears amount is likely to be higher than the basic estimate.
The 8th Central Pay Commission was formally constituted on November 3, 2025. It is chaired by Justice Ranjana Desai, a former judge of the Supreme Court of India. The commission has been given 18 months to submit its report, which means the recommendations are expected to be presented to the central government by May 2027.
The report will cover crucial aspects such as the fitment factor, revised pay matrix, pension revision, allowances, and retirement benefits. Once the report is submitted, the government will review the recommendations and take a final decision on implementation.
Traditionally, state governments follow the pay revision pattern set by the central government, though with some delay and modifications. Once the 8th Pay Commission recommendations are implemented at the central level, many state governments are expected to adopt similar pay structures.
This means the impact of the 8th Pay Commission will likely extend beyond central government employees and pensioners, eventually influencing state government salaries and pensions as well.
At present, employees should not expect an immediate salary hike, but they can remain assured that any delay will be compensated through arrears. The final figures will depend on the approved fitment factor, revised allowances, and the exact implementation date.
For now, patience is key, as the process is moving forward step by step. Once implemented, the 8th Pay Commission is expected to bring substantial financial relief, especially through arrears accumulated over months or even years.
