The year 2025 is now in its final stages, and in a few days we will enter 2026. With the advent of the new year, there is a lot of tension among government employees. This tension is due to the completion of the Seventh Pay Commission and the imminent arrival of the Eighth Pay Commission. Thousands of government employees who are retiring this year or are going to retire in the next few days are facing a big question. The question is: will they be able to get the benefits of the new Pay Commission after retirement? Or will they be entitled to pension based on the old pay scale?
Submitting the report to the Eighth Pay Commission
Although it is a well-established belief that once you retire, you lose the benefits of the Pay Commission changes, it is not true. You do not have to lose hope if you will be retiring in 2025. The Ministry of Finance has allowed the Eighth Pay Commission a full eighteen months to complete its report, which will be submitted in November 2025. This will result in the findings of the commission being completed by approximately the middle of 2027 and the Government will be able to make the final recommendations concerning its implementation by 2028.
Retiring employees will be excluded
The implementation may take time, but employees retiring in 2025 will not be excluded. The benefits of the 8th Pay Commission will not only apply to the salaries of current employees, but will also apply to the pensions of retired employees. This means that after the implementation of the recommendations of the commission, your pension will also increase significantly.
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8th Pay Commission to be implemented in 2028
Understand the math of arrears
Now let’s discuss the most important thing, which causes the most confusion: arrears. Suppose you retire in 2025 and the 8th Pay Commission is implemented in 2028. Looking at the government rules and regulations and the trends of previous pay commissions, whenever a new pay commission is implemented, it is calculated from the date of expiry of the previous commission.
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Know how to calculate the arrears
This means that you will get arrears of arrears for the period between the implementation of the commission’s recommendations from 2026 onwards. This amount, which could be in lakhs of rupees, will be deposited in your bank account at once. The arrears will be calculated based on the increase in your pension. The government will transfer this money directly to the pensioner’s account, so that you do not have to visit any office.