There are only 2 days left for the end of 2025. Central government employees are waiting for the new year. Because the Eighth Pay Commission is going to be implemented from January 1, 2026. Along with this, several rules will change. Central government employees and pensioners are interested in knowing how much their salaries will increase after the implementation of the Eighth Pay Commission, what changes will there be in dearness allowance and when will the arrears be paid.

Eighth Pay Commission to start from January 1

There will be significant changes for central government employees. The current effective Seventh Pay Commission will expire on the last day of the year, i.e. December 31. The Eighth Pay Commission approved by the central government will come into effect from January 1, 2026. Although the government recommendation is not yet available, discussions are ongoing on this. Until the final statement is published, all the salary figures of employees are approximate. However, experts have given an idea of ​​what changes may come in various fields after the new Pay Commission comes into effect.

How much will the salary increase be?

The salary increase of central government employees after the implementation of the Eighth Pay Commission depends on various economic and financial factors. Pratik Vaidya, MD, Karma Management Global Consulting Solutions Private Limited, said, “Expectations are generally influenced by past trends and the current economic situation.” He added, “The average salary hike was around 40% due to the Sixth Pay Commission. The Seventh Pay Commission saw an increase of 25-30%. As per initial estimates, salaries could increase by 20 to 35% after the implementation of the Eighth Pay Commission. However, this will depend on the fitment factor, which plays a significant role in salary calculation and can range from 2.4 to 3.0 points.”

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What are the possible changes in DA?

Apart from the salary hike, the dearness allowance and dearness relief (DA and DR) for employees and pensioners will change after the implementation of the 8th Pay Commission. These allowances are revised periodically to protect employees from inflation. This usually happens twice a year. When a new pay commission comes into effect, DA is also adjusted and included in the basic salary.

Under the 8th Pay Commission, experts say that DA calculation will be restructured considering the inflation rate of 2026. This may impact both take home salary and future DA increases.

What will happen to outstanding arrears?

Whenever a new pay commission is implemented, usually the outstanding arrears are given as per the previous pay commission. This means that even if the increased salary is given to the employees later, it will still be calculated from the date of implementation of the pay commission. GenZCFO founder CA Manish Mishra said, “The arrears will likely be calculated from January 1, 2026. However, the actual amount will be paid after the commission’s recommendations are approved.”

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When will the additional salary be credited to the account?

Will the increased salary be credited to the account as soon as the 8th Pay Commission comes into effect? ​​Everyone’s question. Experts say that it may take time for the actual salary revision and arrears to be paid. Like the previous Pay Commission, employees and pensioners will have to wait.

According to Pratik Vaidya, the 7th Pay Commission came into effect from January 2016. But it was approved by the cabinet in June of that year. As a result, the new salary including arrears will be credited in the following months.