8th Pay Commission: Great news for employees, will the money start flowing from January? Know every major update..

8th Pay Commission: With the start of the new year 2026, the hearts of over 10 million central government employees and pensioners are racing. The question on everyone's mind is whether the benefits of the 8th Pay Commission will begin this January. The term of the 7th Pay Commission ended on December 31, 2025, so the suspense regarding the salary hike continues.

Will there be an increase in January's salary?
If you are expecting a large sum of money to be credited to your bank account in the first week of January, hold on. According to experts, even though the 8th Pay Commission is considered effective from January 1, 2026, it will take some time for salaries to increase. The reason is that the commission has been constituted, and former Supreme Court Judge Ranjana Prakash Desai is chairing it. The commission has been given approximately 18 months to submit its complete report.

When will the real impact be felt?
It is expected that the official announcement of the new salary slabs may be made by the end of 2026 or the beginning of 2027.

What about arrears?
Delay does not mean loss. The rules state that if there is a delay in the announcement, employees will receive arrears from January 1, 2026.  For example, if the commission is implemented in 2027, you will receive all the back pay in a lump sum. However, remember that this arrear will be fully taxable.

What could the fitment factor be?
The biggest factor in the 8th Pay Commission is the fitment factor. If the government keeps it around 1.92 or 2.15, there will be a tremendous increase in salaries.

Things you should know
DA Merger
Reports suggest that by 2026, the Dearness Allowance (DA) could reach 70%, which may be merged with the basic salary.

Who will benefit the most?
Experts believe that lower-level employees may see the biggest percentage increase in their salaries.

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