8th Pay Commission: The 7th Pay Commission’s tenure has officially concluded. As a result, conversations surrounding the 8th Pay Commission are intensifying. Central government employees are particularly curious about the amount of arrears they will receive once the new Pay Commission is put into effect.
At this moment, the government has not provided a specific date for the 8th Pay Commission’s implementation, nor has it clarified when it will take place. However, looking back at the history of previous pay commissions, one consistent trend has been observed: the implementation of recommendations tends to be delayed, yet salaries are treated as retroactive. This is the reason employees often receive significant arrears.
Why is there so much talking about January 1, 2026?
The 7th Pay Commission wrapped up its 10-year term on December 31, 2025. Traditionally, the new Pay Commission cycle is considered to begin the very next day, which is January 1, 2026.
This pattern has occurred in the past. The 6th Pay Commission was implemented retroactively from January 1, 2006, and the 7th Pay Commission from January 1, 2016.
Although the government has not officially confirmed that the 8th Pay Commission will start on January 1, 2026, employee organizations and experts are optimistic that a similar approach will be taken this time. This suggests that while implementation may be delayed, the benefits will be available retroactively.
How long could the arrears last?
If the recommendations of the 8th Pay Commission take between 18 to 24 months to be implemented, arrears could build up during that timeframe. This is why the topic of arrears is generating so much discussion. However, before making any estimates about the arrears, it is crucial to understand what the actual salary changes were during the last cycle.
What was the salary for Level-1 under the 6th Pay Commission?
In the 6th Pay Commission, salaries were set using a pay band and grade pay system. For a Level 1 employee, the basic pay was Rs 7,000, along with a 125 percent DA. They also received a housing rent allowance (HRA) of 30, 20, or 10 percent based on the city, plus a transport allowance.
When you add everything up, the total monthly gross salary was about Rs 19,200 in city X, Rs 18,050 in city Y, and Rs 17,350 in city Z.
What changed with the 7th Pay Commission?
The 7th Pay Commission got rid of the grade pay system and introduced the pay matrix. The basic pay for Level 1 was set at Rs 18,000. At that point, DA was zero since the 125 percent DA was included in the basic pay. HRA and transport allowance were recalculated based on this new basic pay.
After these adjustments, the starting gross salary rose to around Rs 24,000 in city X, Rs 22,000 in city Y, and Rs 20,200 in city Z.
How much did the salary actually go up?
There was a noticeable increase in monthly salaries from the last phase of the 6th Pay Commission to the start of the 7th Pay Commission. The rise was about Rs 4,800 in city X, around Rs 3,950 in city Y, and roughly Rs 2,850 in city Z.
In percentage terms, Level 1 employees saw their salaries increase by about 16% to 25%. These numbers are now the foundation for the 8th Pay Commission’s projections.
Where will a Level-1 employee’s salary be by 2026?
Under the 7th Pay Commission, the basic pay for Level 1 stays at Rs 18,000, but the DA has been gradually increasing. Currently, the DA is estimated to be around 58 percent, leading to a gross salary of about Rs 34,440.
Since the 8th Pay Commission is anticipated to take about two years to roll out, it’s expected that the DA will rise even more. If the DA reaches around 68 percent, the gross monthly salary could be approximately Rs 36,240.
Arrears can be in lakhs
Now, given the current situation, let’s assume that the 8th Pay Commission is implemented with a delay of about two years. If the government follows the same structure as last time, the arrears could reach lakhs of rupees, even for entry-level employees. For a Level 1 employee, a 24-month delay could mean arrears of approximately Rs 2.17 lakh. But the true picture will only become clear once the Pay Commission submits its report and the government makes a final decision.
