New Delhi. Discussions are intense these days regarding the recommendations of the 8th Pay Commission for central employees. If the Commission’s recommendations are considered applicable from January 2026 and the increased salaries are credited to the employees’ accounts from January 2027, then arrears worth lakhs of rupees may arise.

How is arrear made?

The mathematics of arrears is simple. First of all, the difference between the new basic pay and the old basic pay is calculated. This difference is then multiplied by the number of months for which the payment is outstanding. Along with this, the difference of allowances like DA, HRA and transport allowance is also added.

The fitment factor in the 8th Pay Commission is likely to be between 2.86 to 3.0. This means that the current basic salary can increase by approximately 2.9 times.

Estimated Arrears (January 2026 to December 2026)

Group A: 7th Pay Commission Basic Pay – ₹56,100 Estimated new basic pay – ₹1,60,000 Monthly difference – ₹1,03,900 12 months arrears (Basic + DA) – ₹12.46 lakh

Group B: 7th Pay Commission Basic Pay – ₹35,400 Estimated new basic pay – ₹1,00,000. Monthly difference – ₹64,600 12 months arrears (Basic + DA) – ₹7.75 lakh

Group C: 7th Pay Commission Basic Pay – ₹25,500 Estimated new basic pay – ₹72,000 Monthly difference – ₹46,500 12 months arrears (Basic + DA) – ₹5.58 lakh

Group D: 7th Pay Commission Basic Pay – ₹18,000 Estimated new basic pay – ₹52,000 Monthly difference – ₹34,000 12 months arrears (Basic + DA) – ₹4.08 lakh

If the fitment factor goes above 3.0, the basic pay will increase further, which will also increase the amount of arrears. Also, DA is revised every six months and the new DA will be applicable on the new basic. HRA and transport allowance will also be recalculated as per the new basic.

However, there is no official confirmation yet regarding the formal announcement of the 8th Pay Commission, its implementation date and fitment factor. Therefore all figures are based on estimates and probabilities. At present, the eyes of the central employees are fixed on the next decision of the government. If the recommendations are implemented as expected, the beginning of 2027 could bring great financial good news for them.