8th Pay Commission comes into effect: Know big changes affecting your pocket

New Delhi: The 7th Pay Commission ended on January 1, 2026, and the 8th Pay Commission came into effect. Employees had been waiting for this for a long time. The 8th Pay Commission has also been constituted, and the government will make further decisions based on its report.

When will the 8th Pay Commission be implemented?

According to the provisions, the 8th Pay Commission has been in effect since January 1, 2026. However, its actual implementation will take some time. According to experts, the 8th Pay Commission may be implemented between the financial year 2027-28 or the financial year 2028-29.

Rohit Jain, Managing Partner of Singhania & Company, told the media, “In mid-2026, the Union Cabinet approved the formation of the 8th Pay Commission. This commission has 18 months to prepare and submit a detailed report. Although the official date of implementation is January 1, 2026, the new salary slab may be announced at the end of 2026 or the beginning of 2027.” 

When will the arrears of the 8th Pay Commission be paid?

According to the rules, central government employees and pensioners should receive their salaries after the implementation of the 8th Pay Commission. Since no decision has yet been made regarding the salary slab, when a decision is made, the arrears will be paid from January 1, 2026. 

For example, if the 8th Pay Commission is implemented in May 2027, then employees will be paid arrears according to the 8th Pay Commission from January 1, 2026, to April 2027.  It is important to note that employees will receive arrears for any delay.

Will arrears be taxed?

Yes, employees should keep in mind that arrears are taxable. After the implementation of the 8th Pay Commission, many government employees will fall under the 30 percent income tax slab. They will have to pay tax on the arrears at the same rate.