Central government employees in India could soon receive significant arrears under the 8th Pay Commission, with illustrative payouts for staff in Levels 1-5 ranging from around Rs 3 lakh to over Rs 9 lakh, depending on the fitment factor applied. These projections are based on combinations of possible multipliers that determine revised pay and arrears due from January 1, 2026, the effective date of the new pay panel’s recommendations. Final figures will depend on the official fitment factor adopted by the government and the period of delay in implementation.
How Arrears Are Calculated
Arrears under the 8th Pay Commission arise when revised basic pay and dearness allowance (DA) adjustments are applied retrospectively to a period after the end of the 7th Pay Commission on December 31, 2025. For Level 1-5 employees, arrears are calculated by multiplying the difference in basic pay for each month by the number of months that salary revisions are delayed. Fitment factors -multipliers used to revise the basic pay-play a vital role in determining the size of arrears. Various permutations of fitment factors including 2.0, 2.15, 2.28 and 2.57 suggest that, over a hypothetical 20-month arrears period, basic pay arrears alone could range significantly.
For example, under these fitment scenarios for a Level 1 employee over 20 months, arrears could span roughly Rs 3.60 lakh at a factor of 2.0 to about Rs 5.65 lakh at 2.57. Similarly, Level 5 staff could see arrears from around Rs 5.84 lakh up to more than Rs 9.17 lakh. These figures illustrate how both the length of the arrears period and the fitment ratio affect payouts.
What Does It Mean for Staff?
While these projections generate anticipation among central government employees and pensioners, experts note that these are estimates and not official figures. The final arrears payout will depend on the government’s decision on the fitment factor and the exact implementation date of the 8th Pay Commission. Typically, arrears include the difference in basic pay and DA, but may not cover all other allowances such as house rent allowance (HRA) or transport allowance.
Employees and retirees are advised to await official notifications for confirmed payouts and timelines, as the government’s formal announcement will set the scale of arrears and revised salaries.
