Big update on the 8th Pay Commission: Delays could lead to huge losses! Could you lose lakhs of rupees from your salary every year?
8th Pay Commission: If you are a central government employee covered under the Eighth Pay Commission (8th CPC), this news is extremely important for you. The delay in implementing the Pay Commission is not only prolonging the wait for a new salary but could also directly impact your finances. There is a potential loss of not just thousands, but lakhs of rupees, especially in House Rent Allowance (HRA). This is why this delay is no longer just about dates, but directly about your earnings.
When will the 7th Pay Commission end, and when will the 8th be implemented?
The 7th Pay Commission's term ends on December 31, 2025. According to the rules, the 8th Pay Commission is considered to be implemented from January 1, 2026. However, the central government has not yet made any official announcement regarding the date of implementation and arrears. In November 2025, the Finance Ministry gave the commission 18 months to submit its report. According to experts, it could take another 6 months after that for the recommendations to be implemented. This means a delay is almost certain.
Which allowances do not receive arrears?
Central government employees primarily receive DA, HRA, and TA.
Allowances like Transport Allowance (TA), Uniform Allowance, and CEA are fixed.
Arrears are not paid on these; only revisions are made.
DA arrears are also not paid because the DA is merged into the basic salary when the new salary is determined.
Where does the real loss occur?
Manjit Singh Patel, National President of the All India NPS Employees Federation, told ET that, "Employees do not receive arrears on HRA under the new pay commission. Based on the employee's basic salary, if the 8th Pay Commission is implemented late, the employee could suffer a loss ranging from a few thousand to several lakhs of rupees."
The government does not pay arrears on HRA!
He gave an example, stating that if an employee's basic salary is ₹76,500... And if the pay commission is implemented from January 1, 2028, the total loss could exceed ₹3.80 lakh. According to Patel, the government does not pay arrears on HRA, which results in significant savings for the government due to the delay. However, arrears are paid on basic pay and most allowances. Employee unions have long been demanding that arrears also be paid on HRA. Let's understand the loss through calculations:
Suppose an employee's current basic salary is ₹76,500 and they live in an 'X' category city:
Loss in HRA over 12 months in the year 2026
Date of implementation of Pay Commission Basic Salary HRA HRA (in 12 months)
If the 8th CPC is implemented from January 1, 2026 (assuming a 2.1 fitment factor) ₹1,60,650 ₹38,556 ₹4,62,672
If the 8th CPC is implemented from January 1, 2028 ₹76,500 ₹22,950 ₹2,75,400
Loss in 12 months ₹1,87,272
Loss in HRA over 12 months in the year 2027, assuming a 3% annual increase in basic salary:
Date of implementation of Pay Commission Basic Salary HRA HRA (in 12 months)
If the 8th CPC is implemented from January 1, 2026 (assuming a 2.1 fitment factor) ₹1,65,470 ₹39,713 ₹4,76,552
If the 8th CPC is implemented from January 1, 2028 ₹78,795 ₹23,639 ₹2,83,662
Loss in 12 months ₹1,92,890
Total loss in 24 months ₹3,80,162
This clearly shows that if the 8th Pay Commission is implemented in 2028 instead of 2026, employees will not receive HRA arrears, and this is why there could be a direct loss of up to ₹3-4 lakh.
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