With the 7th Pay Commission period ending on 31 December 2025, employees are now eagerly awaiting the 8th Pay Commission salary revision. Although the official implementation may take place by 2027, the revised salary can be considered effective from 1 January 2026, allowing employees to receive arrears for 12–24 months.
When Will the 8th Pay Commission Benefits Start?
Experts say that since the 7th Pay Commission ended on 31 December 2025, the 8th Pay Commission’s new salary structure can be counted from 1 January 2026. The official rollout may take until 2027, but arrears for the intervening period will likely be paid together.
How Are Arrears Calculated?
According to expert Ramachandran Krishnamurthy:
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Calculate monthly increment = New Basic Salary – Old Basic Salary
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Multiply by number of months pending
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Include Dearness Allowance (DA) on the basic difference
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Housing Rent Allowance (HRA) and Transport Allowance are usually not included
The New Basic Salary is derived using the fitment factor:
New Basic=Current Basic×Fitment Factor\text{New Basic} = \text{Current Basic} \times \text{Fitment Factor}
Impact of Fitment Factor
The arrears amount depends heavily on the fitment factor. Example for Level 1 employee with current basic ₹18,000:
| Fitment Factor | New Basic (₹) | Monthly Increase (₹) | 20-Month Arrears (₹ lakh) |
|---|---|---|---|
| 2.0× | 36,000 | 18,000 | 3.60 |
| 2.15× | 38,700 | 20,700 | 4.14 |
| 2.28× | 41,040 | 23,040 | 4.61 |
| 2.57× | 46,260 | 28,260 | 5.65 |
Similar calculations apply for Levels 2 to 5:
| Level | 2.0× | 2.15× | 2.28× | 2.57× |
|---|---|---|---|---|
| 2 | 3.98 | 4.58 | 5.09 | 6.25 |
| 3 | 4.34 | 4.99 | 5.56 | 6.81 |
| 4 | 5.10 | 5.87 | 6.53 | 8.01 |
| 5 | 5.84 | 6.72 | 7.48 | 9.17 |
Note: Calculations are based only on basic pay, excluding HRA or transport allowances.
Key Takeaways
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The fitment factor is crucial in determining the final arrears.
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Arrears will include DA on the basic difference, but HRA and transport allowances are generally not backdated.
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Employees in Levels 1–5 can expect several months’ arrears in a lump sum once the new pay scales are implemented.
