Central government employees and pensioners eagerly await details on the 8th Central Pay Commission (8th CPC), particularly whether salary and pension revisions
will be backdated to January 1, 2026, entitling them to arrears. The 7th Pay Commission's 10-year term ends on December 31, 2025, but the government has remained non-committal on the effective date amid recent Parliament queries, said a report by ET. Government's Stance in Parliament During the winter session, Minister of State for Finance Pankaj Chaudhary addressed questions on implementation, saying: “The date will be decided by the government. We will make appropriate fund provisions for implementing accepted recommendations.” The 8th CPC's Terms of Reference (ToR) were notified on November 3, 2025, giving the commission 18 months to submit its report (likely by mid-2027). Approval and notification could add another 3–6 months, pointing to potential rollout in late 2027 or early 2028. Historical Precedent: Arrears Despite Delays Past commissions often faced delays but provided backdated arrears: 7th CPC — Implemented June 2016; arrears from January 1, 2016 6th CPC — Approved August 2008; arrears from January 1, 2006 5th CPC — Formed 1994; implemented 1997 (delayed 3.5 years) Employee unions, including All India NPS Employees Federation President Manjeet Singh Patel, argue for arrears from January 1, 2026, in line with tradition. Why HRA Exclusion Could Limit Arrears The government traditionally excludes House Rent Allowance (HRA) from arrears calculations, saving significant funds. Example for basic pay Rs 76,500 (assuming fitment factor 2.0): Current take-home (with DA & HRA): ~ Rs 1,43,820 Post-8th CPC: ~ Rs 1,94,310 Monthly arrear without HRA: Rs 32,131 Monthly arrear with HRA: Rs 50,490 For one employee, this saves ~ Rs 18,360 per month on HRA alone. What If Implementation is Delayed? If rollout slips to 2028 without backdating: Salaries, DA, HRA, transport allowance, and increments continue under 7th CPC rules. No immediate hike; arrears could be limited or prospective only in “exceptional” economic cases. Experts note delays could yield larger lump-sum arrears if backdated, but fiscal pressures might prompt a prospective start. The 8th CPC covers around 50 lakh employees and 69 lakh pensioners. Unions are demanding clarity on the effective date and full HRA inclusion. With the report due in 18 months, more updates are expected in Budget 2026–27. For now, there is no confirmed provision for arrears from January 1, 2026—employees and pensioners will have to wait for official notifications.
