8th Pay Commission: ₹44,900 basic pay could mean ₹5.14 lakh in arrears at 2.57 fitment factor

8th Pay Commission: ₹44,900 basic pay could mean ₹5.14 lakh in arrears at 2.57 fitment factor

The 8th Pay Commission has completed one year of its 18-month term, with its final report expected around May to June 2027. If the revised pay is applied from January 1, 2026, a Level 6 employee with ₹44,900 basic pay could see about ₹5.14 lakh in 12-month arrears at a 2.57 fitment factor.

An illustrative representation of central government employees awaiting the 8th Pay Commission salary revision, with a potential ₹5.14 lakh arrears calculation based on a 2.57 fitment factor if the 8th Pay Commission is implemented from January 1, 2026. (AI-generated image for representational purposes only)

The 8th Pay Commission concluded two key meetings in October: one in Bengaluru on October 8 and another in Mumbai on October 23. On November 3, 2026, the commission, headed by Justice Ranjana Prakash Desai, completed 12 months since its constitution. Under its Terms of Reference (ToR), it has 18 months to table its final report.

Central government employees and pensioners awaiting its recommendations could receive substantial arrears if the revised pay structure is implemented retrospectively from January 1, 2026, since the 7th Pay Commission’s term officially ended on December 31, 2025. However, the actual amount will depend on the fitment factor, the revised pay structure and the government’s final decision on allowances, salary payments and arrears eligibility.

Because the final report has not been submitted, employees and pensioners can only work with illustrative calculations.

Here is what 12 months of arrears could look like if the fitment factor stays at 2.57, as it was under the 7th Pay Commission.

How much arrears could employees receive?

Take a central government employee in Pay Matrix Level 6 with a current basic pay of ₹44,900. At a fitment factor of 2.57, the revised basic pay would be:

Revised basic pay = Fitment factor × Old basic pay = 2.57 × 44,900 = ₹1,15,393 (about ₹1,15,400 after rounding)

Arrears must account for the dearness allowance (DA) already received. DA stood at 60% from January to June 2026 and rose to 63% from July. The employee’s existing basic pay plus DA therefore comes to about ₹71,840 a month for the first six months and ₹73,187 for the next six.

The monthly difference between the revised basic pay and the existing pay with DA is about ₹43,560 for January to June and ₹42,213 for July to December. Over 12 months, that adds up to roughly ₹5.14 to 5.15 lakh (6 × 43,560 + 6 × 42,213 = ₹5,14,638).

Monthly difference

Six-month arrears

January–June 2026

₹43,560

₹2,61,360

July–December 2026

₹42,213

₹2,53,278

Total 12 month arrear (approximately)

---

₹5,14,638 (final 12 month total after approximate rounding off)

Note: Therefore, the illustrative 12-month arrears could amount to approximately ₹5.14-5.15 lakh.

What could change the final arrears amount?

This calculation currently assumes that the fitment factor will remain at 2.57, the employee’s basic pay will remain unchanged, and the revised DA will start at zero after the existing DA is fully absorbed into the new basic pay.

It completely excludes potential changes to HRA and transport allowance, as well as deductions for income tax, CGHS, NPS, and CGEGIS. Annual salary increments, changes in the payment structure, promotions, MACP-related developments, or any other improvements can also affect the final calculation.

What should not be overlooked is that the 8th Pay Commission has not been officially announced yet. That is why any fitment factor or revised pay matrix changes have not been officially discussed or communicated to common citizens yet. The final recommendation of the 3-member 8th Pay Commission, headed by Justice Ranjana Prakash Desai, is tentatively expected to be tabled around May-June 2027.

Hence, the ₹5.14 to 5.15 lakh calculation discussed above should be treated only as an illustrative estimate, not an assured payout. Employees will hence have to wait for the 8th Pay Commission’s recommendations and the subsequent government order to know their revised salaries, any subsequent significant changes to them and actual arrears eligibility.

Shivam writes on personal finance, equity markets, and mutual funds. He has previously contributed to several leading publications, including Moneycontrol. He can be reached at shivam.shukla@htdigital.in