How much arrears will the central employees get? Know what experts say on the 8th Pay Commission
8th Pay Commission: Curiosity has increased among central employees regarding the 8th Pay Commission. The 7th Pay Commission has expired on 31 December 2025, and the provisions of the 8th Pay Commission are to be effective from 1 January 2026. This means that a new round of increase in the salaries of central government employees is going to start.
The government has already indicated that the Pay Commission is implemented every ten years, and this time too, the same tradition will continue. The 8th Pay Commission was constituted in early to mid-2025, and its Terms of Reference (ToR) notification was issued in November 2025. The commission has been given about 18 months to submit its report.
When will the 8th Pay Commission be implemented?
Although the commission’s recommendations will be effective from January 1, 2026, experts believe that the actual implementation may be delayed. Bank of Baroda Chief Economist Madan Sabnavis said that the practical impact of the commission’s recommendations will be visible by the end of the financial year 2027-28 or 2028-29. According to Rohit Jain, managing partner of Singhania & Company, the announcement of the new pay slab is likely to be made by the end of 2026 or early 2027.
How much arrears will employees get?
The biggest question is how much arrears the employees and pensioners will get in case of delay. According to Rohit Jain, if the 8th Pay Commission is implemented in May 2027, the employees will get arrears for the period between January 2026 and April 2027. It will be paid in a lump sum.
Madan Sabnavis said that the government will make a special provision for arrears in its budget. The arrears will be calculated from the difference in the increased salary. For example, if your salary increases from ₹45,000 to ₹50,000, the difference is ₹5,000. If the delay is for 15 months, the employee will get a total arrears of ₹5,000 × 15 = ₹75,000.
Will it be taxed?
If we talk about tax, then yes this arrears will be fully taxable. According to Sabnavis, many employees may come under the 30% income tax slab after the 8th Pay Commission. Therefore, they will have to pay tax at the same rate on their arrears.
