8th Pay Commission: How Much Salary May Rise in 2026? Big Expectations on DA and Arrears

New Delhi: The end of the year 2025 is near, and government employees and pensioners are eyeing January 1, 2026. The 8th Central Pay Commission is expected to be implemented from this day, and discussions regarding its impact have intensified. The tenure of the 7th Pay Commission is ending on 31 December 2025, after which there is talk of changes in salary, dearness allowance (DA), pension, and arrears due to the implementation of new recommendations. 

How much can the salary increase due to the 8th Pay Commission?

No official data has been released yet as to how much the salary of central employees will increase. But estimates from financial experts and analysts suggest that salaries may increase by about 20 to 35 percent. This estimate has been made keeping in mind the previous pay commissions and the current economic conditions. The average increase in the 6th Pay Commission was around 40%, while in the 7th Pay Commission it was around 23-25%. When the new salary structure is implemented in the 8th Commission, the employees are expected to benefit from better basic pay and allowances. 

The formula for this salary increase will depend on the fitment factor, which is estimated to be between 2.4 and 3.0. This number will decide how the existing basic salary will be changed to the new structure. This decides how much the final take-home salary will increase. 

What can be the change in DA?

When the 8th Pay Commission comes into effect, the talk of linking or adjusting the old dearness allowance with the new pay structure is also being raised. DA is usually based on inflation and is revised twice a year. Experts believe that in the new structure, DA can be recalculated keeping in mind the dearness allowance, and this will directly impact the take-home salary of the employees. 

However, the government has clarified that no official proposal has yet come to directly merge DA with the basic salary under the Eighth Pay Commission. This issue is still under consideration and will become clear only after the final decision is taken.

When will the arrears be received?

Another big question is that if the salaries are revised, when will the employees get the outstanding money for the old period? Experts believe that once the new salary structure is implemented, the difference—i.e., the outstanding amount—from the previous pay commission till the date of implementation of the new commission will be taken into account. It will be paid later, as happened in the 7th Pay Commission. At that time, despite being implemented from January 1, 2016, the payments were made over a period of a few months. Similarly, this time also the expectation is that the outstanding amount can be paid in the financial year 2026-27 or later. 

When will the report and final decision come?

The 8th Pay Commission is currently in the process of officially presenting the report. It has been given approximately 18 months' time to prepare, so the actual decisions will come only after the final report and subsequent cabinet approval. It is possible that the report will be ready by mid-2027. After this the government will take its decision and implement the wage revision. 

What does it mean for employees and pensioners?

About 50 lakh central employees and about 65 lakh pensioners are expected to directly benefit from the 8th Pay Commission. They can get more income by increasing salary, revising dearness allowance, and adding arrears, which can improve their spending capacity and financial stability. However, all this will be confirmed only after the final report and approval.