If the revised salary under the 8th Pay Commission is implemented from January 2027, central government employees could receive arrears running into lakhs of rupees. While there has been no official announcement yet, employee unions believe that recommendations may be considered effective from January 1, 2026, with revised salaries possibly credited from January 2027. In such a case, employees may receive arrears for 12 months.
How Is Arrears Calculated?
The calculation is simple:
New Basic Pay – Old Basic Pay = Monthly Difference
This monthly difference is then multiplied by the number of months (in this case, 12).
In addition, the difference in Dearness Allowance (DA), House Rent Allowance (HRA), and other allowances is also added.
Reports suggest that the fitment factor under the 8th Pay Commission could range between 2.86 and 3.0. This means the current basic salary may increase by nearly 2.9 times.
Estimated Arrears (January 2026 to December 2026)
Below is an estimated calculation based on a possible fitment factor near 2.9:
| Group A | Group B Current Basic Pay (Avg): ₹35,400 Estimated New Basic Pay: ₹1,00,000 Monthly Difference: ₹64,600 Estimated 12-Month Arrears: ₹7.75 lakh | Group C Current Basic Pay (Avg): ₹25,500 Estimated New Basic Pay: ₹72,000 Monthly Difference: ₹46,500 Estimated 12-Month Arrears: ₹5.58 lakh | Group D Current Basic Pay (Avg): ₹18,000 Estimated New Basic Pay: ₹52,000 Monthly Difference: ₹34,000 Estimated 12-Month Arrears: ₹4.08 lakh |
These figures do not fully include HRA and Transport Allowance. If these are recalculated on the revised basic pay, the arrears amount could increase further.
Who Will Benefit the Most?
Group A officers may receive around ₹12–15 lakh in arrears.
Group B employees could get ₹7–9 lakh.
Group C staff may receive ₹5–6 lakh.
Group D employees could get close to ₹4 lakh.
Can the Arrears Increase Further?
Yes. If the fitment factor goes above 3.0, the revised basic pay will increase further, raising the arrears amount. Since DA is revised every six months, the new DA would be calculated on the higher basic pay, increasing the total arrears. HRA and Transport Allowance would also be recalculated accordingly.
Why Is This Important for Employees?
In the current inflationary environment, a lump-sum arrears payment could provide significant financial relief. Many employees are planning loans, education expenses, or investments based on the expected pay revision. However, it is important to note that no official confirmation has yet been issued regarding the implementation date or fitment factor.
If the 8th Pay Commission is implemented from January 2027 with retrospective effect from January 2026, central government employees could see a substantial arrears credit in their accounts. All eyes are now on the government’s next announcement.
