8th Pay Commission: The year 2025 is about to end, and the new year (2026) will begin in two days. Central government employees are eagerly awaiting this arrival, as the Eighth Pay Commission may be implemented along with various rule changes from January 1, 2026. Central government employees and pensioners are eager to know how much their salaries will increase upon implementation, what changes will occur to their dearness allowance (DA), and when will the pending arrears be paid. Let’s examine the estimates from experts regarding these expectations.

2026, will bring significant changes for central government employees. The currently in effect 7th Pay Commission expires on the last day of the year, December 31, 2025, and the 8th Pay Commission, approved by the central government, will be implemented on January 1, 2026. While official recommendations are still awaited, discussions about it are rife. However, keep in mind that these figures are estimates until the final report is released. However, they can provide an idea of ​​the changes that will occur in various areas after the new Pay Commission is implemented.

What changes might be seen in DA?

Beyond the salary hike, let’s talk about changes in dearness allowance and dearness relief (DA-DR) for employees and pensioners after the implementation of the 8th Pay Commission. To protect employees from inflation, this allowance is revised periodically, usually twice a year. When a new pay commission is implemented, DA is also adjusted and incorporated into the basic salary. Under the 8th Pay Commission, experts believe that DA calculations will be restructured to account for inflation levels around 2026. This could impact both take-home salary and future DA increases.

What will happen to pending arrears?

Whenever a new pay commission is implemented, the arrears are usually paid according to the previous pay commission. This means that even if the increased salary is paid to employees later, it is calculated from the date of implementation of the pay commission.

CA Manish Mishra, founder of GenZCFO, says the arrears will likely be calculated from January 1, 2026, which is the cut-off date for the 7th Pay Commission, even though the actual payment will be made later, once the Commission’s recommendations are approved.