8th Pay Commission: The 8th Pay Commission will bring major changes to salaries, pensions, and arrears. The government’s stance on the fitment factor, DA policy, and arrears timeline has been clarified. Find out how much employees and pensioners can benefit.
8th Pay Commission: The 8th Central Pay Commission is expected to alter the salaries and pensions of over 5 million central government employees and approximately 6.9 million pensioners. However, final decisions regarding its implementation date and the government’s expected costs have not yet been made.
This time, salary and pension increases will also be determined based on the fitment factor. The fitment factor is a multiplier used to multiply the current basic salary and basic pension. The higher the factor, the larger the increase.
Recommendations may be issued within 18 months.
Minister of State for Finance Pankaj Chaudhary informed the Lok Sabha that the 8th Pay Commission was constituted on November 3, 2025. Justice Ranjan Prabha Desai is its chairperson. Professor Pulak Ghosh has been appointed as a part-time member, while Pankaj Jain is the member-secretary of the commission.
The government expects the Pay Commission to submit its recommendations within 18 months. The term of the current 7th Pay Commission ends on December 31, 2025. It is believed that the new salaries and pensions may become effective from January 1, 2026.
How much will employees receive in arrears?
Employees and pensioners are expected to receive their arrears after the recommendations are approved. However, due to the government process, it may take one to two years for implementation. If the 8th Pay Commission recommendations are implemented in January 2028, but are considered effective from January 2026, employees will receive a full 24 months’ arrears.
Now, let’s assume that an employee with the lowest basic pay receives an average monthly salary increase of ₹11,900. The total arrears for 24 months would be approximately ₹2.85 lakh.
This means that even an entry-level employee could potentially receive arrears of approximately ₹2.8 to ₹3 lakh, while this amount could be many times higher for employees at higher pay levels.
Government’s stance on DA and DR clarified
The Finance Ministry has clarified that there is currently no proposal to merge Dearness Allowance (DA) and Dearness Relief (DR) into basic pay. This has put an end to ongoing discussions on social media and in employee organizations.
DA and DR will continue to increase every six months as before. It will continue to be calculated based on the All India Consumer Price Index for Industrial Workers (AICPI-IW).
What will be the impact if the fitment factor is set at 2.15?
If the fitment factor is fixed around 2.15, the basic salary could more than double. This will also have a direct impact on HRA, pension, and other allowances, as these are all linked to basic pay.
According to ongoing discussions at the policy level, the recommendations of the 8th Pay Commission may be implemented in the financial year 2028. In such a scenario, arrears could be paid from January 1, 2026, until implementation, which could amount to approximately five quarters.
How Much Will the Government Burden Be?
Experts estimate that the total burden of the Pay Commission, combined with the central and state governments, could exceed ₹4 lakh crore. If arrears are included, this figure could reach ₹9 lakh crore.
The government has stated that necessary budgetary arrangements will be made to implement the recommendations, while maintaining financial balance and providing relief to employees.
The post 8th Pay Commission: What will change from salary and pension to DA, how much arrears will be received; understand the full calculation first appeared on informalnewz.
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