8th Pay Commission: How Big Could the Arrears Payout Be for Central Govt Employees?
The 8th Pay Commission has raised fresh hope and several questions among lakhs of central government employees and pensioners across India. While the process has officially begun, uncertainty over the implementation date has triggered widespread discussion around a possible salary hike and the arrears that may follow.
New Delhi, January 14: The 8th Pay Commission has raised fresh hope and several questions among lakhs of central government employees and pensioners across India. While the process has officially begun, uncertainty over the implementation date has triggered widespread discussion around a possible salary hike and the arrears that may follow.
What Is the Latest Update on the 8th Pay Commission?
In October 2025, the Union Cabinet approved the Terms of Reference (ToR) for the 8th Central Pay Commission, allowing it to study existing pay structures and recommend revisions. However, the government has not yet announced when the revised salaries will actually be implemented. 8th Pay Commission: What Past Pay Hikes Reveal About the Next Salary Revision.
Pay Commissions are usually set up every 10 years. The 7th Pay Commission came into force on January 1, 2016, which is why many employees expected the 8th Pay Commission to begin from January 1, 2026. As of now, this date remains an expectation and not an official decision. 8th Pay Commission Update: Why Salary Hikes Are Yet to Be Notified and What It Means for DA.
Who Will Benefit From the 8th Pay Commission?
The upcoming pay commission is expected to benefit:
• Around 50 lakh central government employees, including defence personnel
• About 69 lakh pensioners
Why Are Employees Talking About Arrears?
Arrears refer to the extra amount paid when a salary hike is implemented later than its effective date. If the new pay structure is applied retrospectively, employees receive the difference for the months during which the hike was delayed.
How Much Arrears Can a Government Employee Expect?
The arrears amount depends on the size of the salary hike and the delay in implementation.
Example:
• Old salary: INR 40,000 per month
• Revised salary after hike: INR 50,000 per month
• Monthly increase: INR 10,000
• Delay in implementation: 15 months
Total arrears:
INR 10,000 × 15 months = INR 1,50,000
In this case, the employee could receive INR 1.5 lakh as arrears.
What Has the Government Said?
Union Minister Ashwini Vaishnaw confirmed that the Prime Minister has approved the setting up of the pay commission. He said the Union Cabinet, chaired by Narendra Modi, has cleared the Terms of Reference for the 8th Pay Commission and that the effective date will be decided after the interim report. He added that it is most likely to be January 1, 2026.
For comparison, the 7th Pay Commission was set up in February 2014, and the revised pay based on its recommendations was implemented from January 1, 2016.
The 8th Pay Commission salary hike process is underway, but the final decision on implementation remains pending. Any delay could result in substantial arrears, making the official announcement crucial for millions of central government employees and pensioners across India.
(The above story first appeared on LatestLY on Jan 14, 2026 04:01 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).