Categories: India

8th Pay Commission: No Salary Hike in Budget 2026, But What About Arrears?

Employees may receive 8th Pay Commission arrears for 12–24 months once approved, but the payment date is yet to be confirmed.

Published by Nisha Srivastava

8th Pay Commission: Most of the central government employees were eagerly waiting for the announcement of the 8th pay commission in the Union Budget for 2026-27. But no news was announced in the budget on February 1, 2026, regarding the change in salaries according to the 8th Pay Commission. This has disappointed millions of central government employees and pensioners, who were eagerly waiting for at least some news regarding pay hikes or the implementation of the new commission.

8th Pay Commission: No Pay Hike in Budget 2026

The Budget speech was dominated by economic growth, infrastructure development, reforms, and capital expenditure. There was no mention of an increase in salaries or pension revision based on the 8th Pay Commission.

This indicates that the government is not yet ready to shift gears on the issue of pay revision, primarily because the commission is still in its early stages. The Budget allocations for revised salaries are made only after the recommendations are finalized.

8th Pay Commission: Why Has Salary Revision Not Happened Yet?

The 8th Pay Commission has been constituted, and the Terms of Reference have been approved. The Pay Commission has been given a maximum period of 18 months to analyze the pay structure, economic conditions, and demands of the employees before finalizing the report.

This means that the recommendations will be ready only by the end of 2027 or early 2028. After that, the recommendations will have to be approved by the government. Only then can the new pay and pension structures be implemented.

Therefore, the delay is not unexpected.

8th Pay Commission: Will Employees Receive Arrears?

Yes, arrears are most likely to happen once the new salary structures are approved. Arrears are basically the difference between the old salary and the new salary. This is done for the period before the implementation of the new salary structures. Historically, the new salaries are implemented from a retrospective date, which is usually January 1 of a particular year, in this case, expected to be January 1, 2026.

If the implementation takes longer, the employees will get arrears for the entire period.

8th Pay Commission: When Could Arrears Be Paid?

Arrears can be paid only after a few key steps are completed. First, the Pay Commission must submit its recommendations. Next, the government has to review and approve those recommendations. Finally, the revised pay rules must be officially notified. Only after this process is finished can arrears be released. If the new pay structure is implemented in mid-2027 or even 2028, employees could receive arrears covering a period of 12 to 24 months, which may result in a significant one-time payment. However, there is still no confirmed timeline for when these arrears will actually be paid.

8th Pay Commission: How Large Could Arrears Be?

The final amount will be based on the fitment factor and new salary rates. It is estimated that even junior employees may get several lakh rupees if arrears are paid for two years. The amount will be higher for senior employees based on their basic pay.

In the previous Pay Commissions, arrears have often become a big source of financial gain due to delays in implementation.

8th Pay Commission: What About Dearness Allowance (DA)?

Until the implementation of the 8th Pay Commission, salaries and pensions will remain as per the 7th Pay Commission structure. But the changes in Dearness Allowance will continue as usual.

The increase in Dearness Allowance helps in coping with inflation but does not substitute a pay revision.

8th Pay Commission: What Employees Can Expect Next

For now, employees and pensioners will need to wait. But if past practice continues, the delay could eventually lead to sizeable arrears once the new pay structure is rolled out.

Nisha Srivastava
Published by Nisha Srivastava