8th Pay Commission: Salary, Pension, Arrears – What Changes for 1.2 Crore Govt Staff?

• The 8th Pay Commission is set to impact over 50 lakh central government employees and 69 lakh pensioners, bringing changes to salary, pension, and Dearness Allowance (DA).
• Salary and pension increases will be determined by a fitment factor; recommendations are expected within 18 months, potentially effective from January 1, 2026.
• Employees could receive significant arrears, possibly up to 24 months, if implementation is delayed until January 2028, with entry-level staff getting around ₹2.85 lakh.
• The Ministry of Finance has clarified there is no proposal to merge DA and Dearness Relief (DR) with basic pay; they will continue to increase bi-annually based on AICPI-IW.
• A fitment factor of 2.15 could more than double basic salary, affecting HRA, pension, and other allowances, with the total financial burden estimated at ₹4-9 lakh crore.

Why It Matters: 8th Pay Commission promises significant salary hikes and arrears for central government employees and pensioners.