8th Pay Commission: With the 10-year tenure of the 7th Pay Commission ending on December 31, 2025, the government employees and pensioners are awaiting clarity on the 8th Pay Commission. Now, with the Terms of Reference (ToR) being finalised and the new pay panel being constituted, discussions related to salary hikes and revised pay have gained momentum.
8th Pay Commission likely to be implemented in…
It is estimated that the rollout will likely be in late 2027 or early 2028, instead of January 2026. This delay could potentially mean substantial arrears. The government has already approved the ToR and notified the 8th Pay Commission. Eighteen months have been allocated to submit the report.
Previous trends indicate that the government typically takes an additional 3 to 6 months to sanction the recommendations. An official confirmation on the exact date of implementation is still awaited.
Who is excluded from DA, pay hike benefits?
PIB has stated that Rule 37 of the CCS Rules, 2021, has been amended, but this amendment relates to a specific situation only. The amended rule states that if a government servant employed in a public sector undertaking is dismissed from service for misconduct, his/her retirement benefits will be forfeited.
Only employees who have been removed from their respective positions due to corruption, indiscipline, or other reasons will not receive retirement benefits.
Expected salary hike
According to Market analysts, the 8th Pay Commission may bring a hike in salary and pension of around 30–34% central government employees. For instance, a Level 1 employee earns a basic pay of Rs 18,000 at present, but after adding DA and allowances, this employee gets a salary of about 35,000 per month. If the 8th Pay Commission leads to a 34% hike, the revised amount would be approximately Rs 46,900 monthly. This means a hike of nearly Rs 11,900 per month.
How much arrears could be paid if 8th Pay Commission takes effect from 2028?
If the 8th Pay Commission is implemented in January 2028, applicable retrospectively from January 2026, employees would be eligible to 24 months of arrears. With reference to the above example, the monthly increase was Rs 11,900, so the total arrears within 24 months will be Rs 2.85 lakh. Similarly, for higher-level employees, the arrears amount could see a steep rise.
