8th Pay Commission News: Big Relief Expected! Central Government Employees May Get 17-Month Arrears

There’s some hopeful news for millions of Central Government employees. The long-awaited 8th Pay Commission could soon bring a major financial boost, including the possibility of 17 months of arrears,

if its recommendations are implemented from January 1, 2026, said a report by the Hindustan.Current StatusIn January 2025, the central government announced its plan to constitute the 8th Pay Commission. However, even after nearly ten months, no formal notification or official setup has been made. This delay has created confusion among employees who are wondering when the commission will be formed and when its recommendations will come into effect.When Could the Recommendations Be Implemented?The 7th Pay Commission’s tenure ends on December 31, 2025. Based on past experience, any pay commission typically takes 18 to 24 months to prepare its report. The government then requires another 3 to 9 months for review and final approval.For instance:

• The 7th Pay Commission was formed in February 2014.
• It submitted its report in November 2015.
• The recommendations were implemented from January 1, 2016.

If a similar timeline is followed this time, the 8th Pay Commission’s report is likely to be ready by April 2027. However, if the recommendations are implemented retrospectively from January 1, 2026, central government employees could receive around 17 months of arrears.Kotak Institutional Equities’ EstimateAccording to an analysis by Kotak Institutional Equities, the minimum basic salary under the 8th Pay Commission could rise from Rs 18,000 to around Rs 30,000.Here’s what the report suggests:

• Fitment factor: ~1.8x
• Effective salary hike: ~13%
• Fiscal burden: 0.6–0.8% of GDP
• Estimated government expenditure: Rs 2.4–3.2 lakh crore

Growing Expectations Among EmployeesCentral government employees and pensioners are eagerly waiting for the government’s formal announcement. Many hope the process won’t be delayed, especially given the rising cost of living and inflationary pressures. The new pay structure is expected to help bridge wage gaps and boost morale among employees across departments.If everything proceeds on schedule, the 8th Pay Commission’s recommendations could be implemented in FY 2027, bringing not only a 17-month arrear payout but also a revised and more balanced salary structure for millions of central employees. All eyes are now on the government’s next move.