8th Pay Commission: The provisions of the 8th Pay Commission are set to be implemented starting 1 January 2026, as this is the day the 7th Pay Commission is scheduled to expire. This will result in an 8th Pay Commission salary hike for central government employees, who have been awaiting an update on the matter for months.
“Usually, the recommendations of the pay commissions are implemented after a gap of every ten years. Going by this trend, the effect of the 8th Central Pay Commission recommendations would normally be expected from 01.01.2026,” the government had said in a circular earlier this year.
When will 8th Pay Commission be implemented?
While the provisions of the 8th Pay Commission will take effect from 1 January 2026, the implementation is expected to be delayed.
According to Madan Sabnavis, Chief Economist at Bank of Baroda, the 8th Pay Commission is expected in FY2027-28 or even as late as FY2028-29.
“The Union Cabinet approved the formation of the 8th Pay Commission and its Terms of Reference (ToR) in early to mid-2025 (official notifications were released around November 2025). The commission is typically given 18 months to submit its detailed report. While the effective date of the hike is 1 January 2026, the actual final announcement of the new salary slabs is expected in late 2026 or early 2027,” as per Rohit Jain, managing partner at Singhania & Co.
8th Pay Commission arrears
According to the rules, central government employees and pensioners will receive their arrears in accordance with the implementation of the 8th Pay Commission.
For example, if the 8th Pay Commission is implemented in May 2027, employees and pensioners will receive their arrears from January 2026 to April 2027, or until the time their 8th Pay Commission salary hike takes effect.
“Since the commission is backdated to 1 January 2026, any delay in the announcement means employees and pensioners will receive a lump-sum payment of arrears for the intervening months,” Jain told Livemint.
How much arrears will govt employees get?
According to Madan Sabnavis, the government will include a provision in the budget for arrears, and the payment will be contingent upon that. Employees and pensioners will receive their arrears as part of their total pay, not just their basic salary.
For example, if your pay is increased to ₹50,000 from ₹45,000, the difference in the two salaries will be the arrear component, which is ₹5,000.
If the delay in the salary hike is 15 months, the total payable 8th Pay Commission arrear will be ₹ 5,000 × 15 = ₹75,000.
“This arrear is taxable. Most government employees are likely to be placed in the 30% income tax slab after the salary hike due to the 8th Pay Commission changes. They will have to pay income tax at that rate for the arrears,” Sabnavis told Livemint.
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